Forex Technical Analysis 2011/01/08 (EUR/USD, DOLLAR INDEX, GBP/USD, AUD/USD) Forecast FX

Forecast for August 1^st, 2011

EUR/USD

The EUR/USD currency pair keeps moving inside the rising pattern, one can consider buying it with the stop below 1.4190 only after the price leaves the descending channel. But if the price breaks the rising channel’s lower border and leaves it, this case scenario will be cancelled.

Dollar Index

Dollar Index is testing the descending channel’s upper border at the moment, it is the area where the 5^th point of reference is formed. This area is expected to be a starting point of the fall into the area of 72.95. Therefore, we should expect Dollar to fall as well. But if Index grows higher than 75, this case scenario will be cancelled.

GBP/USD

In case of GPB/USD currency pair we have “head & shoulders” reversal forming with the target in the area of 1.6120, we can consider selling Pound only after the price breaks the neckline. The stop must be above 1.6380. One can try to increase the amount of sales after the price breaks the rising channel’s lower border.

AUD/USD

Australian Dollar is moving inside the rising pattern. Currently we should expect the price to test the level of 1.0840, where one can consider buying the pair with the tight stop. The target of the growth is the area of 1.1110. If the price breaks the level of 1.0800, this case scenario will be cancelled.