Forex Technical Analysis 2011/20/10 (EUR/USD, GBP/USD, USD/CHF, CAD/JPY, DAX) Forecast FX

Forecast for October 20^th, 2011

EUR/USD

At the H4 chart of the EUR/USD currency pair we have “head & shoulders” reversal patter forming with the target in the area of 1.3415. One can consider selling the pair with the tight stop above 1.3860, but increase the amount of sales only after the price breaks the neckline. If the price reaches a new maximum at the level of 1.3905, this case scenario will be cancelled.

GBP/USD

In case of the GBP/USD currency pair we have a descending expansion pattern forming with the target in the area of 1.5602, one can consider selling the pair near the pattern’s upper border in the area of 1.5785. If the price grows higher than 1.5820, this case scenario will be cancelled.

USD/CHF

In case of Franc the correction is taking place. Currently one can consider buying the pair with the stop below 0.8935, and increase the amount of long positions only after the price breaks the level of 0.9060. The target of the growth is the area of 0.9207. If the pair falls lower than 0.8930, we should expect it to continue moving downwards.

CAD/JPY

The CAD/JPY currency pair keeps moving inside the descending channel with the target in the area of 67.88. Currently the price is testing the area for sales. One can consider opening short positions with the tight stop at short periods of time. The price testing the trend’s descending line at the RSI is an additional signal to sell the pair. If the price leaves the descending channel, this case scenario will be cancelled.

DAX

DAX is moving inside the descending channel, one can consider selling the instrument with the tight stop. If the price breaks the channel’s upper border and leaves it, one should close short positions. The closest target of the fall is the area of 5680.