Forex Technical Analysis 2011/14/07 (EUR/USD, GBP/USD, USD/CHF, GBP/JPY) Forecast FX

Forecast for July 14^th, 2011

EUR/USD

The EUR/USD currency pair keeps moving inside the rising correction. Currently we can see the formation of the descending expansion pattern with the target in the area of 1.3616 at the H4 chart. When there are signs of reverse at shorter period of time, one is recommended either try to sell the pair with the tight stop, or wait for the price to test the trend’s descending line at the level of 1.4125. But if the price grows higher than 1.4200, this case scenario will be cancelled.

GBP/USD

Pound is moving inside the descending channel. At the moment the price is testing the channel’s upper border, where one can consider opening short positions with the tight stop. The price testing the trend’s descending line at the RSI is an additional signal to sell the pair. But if the price grows higher than 1.6015, this case scenario will be cancelled.

USD/CHF

Franc keeps moving downwards. Currently we can see the formation of the descending pattern with the target in the area of 0.8135. We should expect the price to test the level of 0.8155, and then to be corrected to the channel’s upper border in the area of 0.8295. Near this area one can try to sell the pair.

GBP/JPY

The pair is moving inside the descending channel, the price is testing the area where the 5^th point of reference is formed. This area may be a starting point of the descending movement with the target in the area of 124.21. One can consider the tight stop sales. But if the price leaves the descending channel, this case scenario will be cancelled.