Forecast for July 22nd, 2011
The EUR/USD currency pair has reached the area where the 5th
point of reference is formed, we should expect the descending movement towards the level of 1.3712. One can consider selling the pair only after the price breaks the trend’s rising line at the RSI, the closest target of the fall in this case will be the area of 1.4165. But if the price breaks the descending channel’s upper border, this case scenario will be cancelled.
Pound has reached the area for sales. At the moment the price is testing the descending channel’s upper border. One can consider selling the pair only if either there are reversal signals at shorter periods of time, or the price is back inside the channel. The target of the fall is the area of 1.5571.
Franc keeps moving inside the descending channel. Currently we have “head & shoulders” reversal pattern with the final target in the area of 0.8059. This target is the same as the target of the descending pattern. One can try to sell Franc with the stop above 0.8235.
In case of Australian Dollar we have a possible upside down “head & shoulders” pattern forming, which is a pattern of continued trend here. The target of the growth is the area of 1.1191. The price is testing the neckline at the moment, and if it succeeds in breaking, one can consider buying the pair with the stop below 1.0670.