Forecast for July 25th, 2011
The EUR/USD currency pair faced the resistance near the descending channel’s upper border, one can consider the tight stop sales. The price testing the trend’s descending line at the RSI is an additional signal to sell the pair. But if the price reaches new local maximum above 1.4450, this case scenario will be cancelled.
One should consider selling Pound only after the price breaks the trend’s rising line at the RSI. The target of the fall in this case will be the area of 1.6155, where the price tests the similar line at the price chart. The stop must be above 1.6325. But if the price reaches new local maximum, this case scenario will be cancelled.
We may assume that New Zealand Dollar will make a strong upward movement into the area of 0.8880. At the moment we should expect the correction to the channel’s lower border in the area of 0.8545, where one can consider buying the NZD/USD currency pair with the tight stop. We recommend you to increase the amount of purchases only after the price breaks the channel’s upper border.
At the H4 chart of Canadian Dollar we can see the formation of the descending pattern with the target in the area of 0.9280. One can consider selling the USD/CAD currency pair near the descending channel’s upper border in the area of 0.9505. But if the price breaks the channel and leaves it, this case scenario will be cancelled.