Forecast for May 24th, 2012
The EUR/USD currency pair is still under pressure and continues moving downwards. Today it has reached a new local minimum at the level of 1.2616. Judging by the H1 chart structure, we should expect the price to test the area of 1.2725, where one can consider selling Euro with the tight stop. In this area there is a strong support level, and if the test fails, the pair may be corrected to the level of 1.29. The analysis of Euro Index also indicates a possible correction. At the H4 chart the RSI indicator was supported by the trend’s ascending line, we should expect Euro Index to rebound in an upward direction.
The GBP/USD currency pair has also reached a new local minimum. At the moment the price is forming the descending pattern at the H1 chart of the pair and testing the channel’s upper border. One can consider selling Pound with the tight stop near the level of 1.5740, the target of the fall is the area of 1.5655. If the pair grows up higher than 1.5770, this scenario will be cancelled.
The USD/CHF currency pair has reached a new local maximum. Currently we can see the formation of “head & shoulders” reversal pattern at the RSI, one can consider selling the pair from the current levels with the stop above 0.9520. The closest target of the fall is the area of 0.9435, which may be a starting point of a new ascending movement.
There is a possibility that the price may form “double top” reversal pattern at the H4 chart of the USD/CAD currency pair. One can consider aggressive sales with the tight stop. The closes target of the fall is the support level of 1.0155. If the pair breaks this level, the price may complete the reversal pattern with the target in the area of 1.0075. If Canadian Dollar grows up higher than 1.0250, еры scenario will be cancelled.
Australian Dollar continues falling down. The RSI indicator was supported by the trend’s ascending line at the H4 chart of the pair, we should expect it to rebound from the current levels in an upward direction. One can consider buying the pair aggressively after the price returns into the area of 0.9745. Conservative traders are advised to stay out of the market.