Forecast for May 5th, 2011
The EUR/USD currency pair keeps moving inside sideways range. Currently the price is testing the upper border, we should expect it to break the channel upwards. In this case the target of the growth will be the area of 1.5140, the stop must be below 1.4770. Don’t forget to move stops into the black as soon as possible.
In case of GBP/USD currency pair we have “head & shoulders” reversal pattern forming with the target in the area of 1.6638. One can try to buy the pair with the tight stop below 1.6490 and increase the amount of long positions after the price breaks the neckline. If the price reaches a new local minimum in the area of 1.6450, this case scenario will be cancelled.
The EUR/JPY currency pair has left the descending channel. At the moment we have the area where we can try to buy the pair with the stop below 119.15. The general target of the growth is the area of 123.78. If the price breaks the level of 119.05, this case scenario will be cancelled.
Judging by Silver analysis, at the weekly chart we can see the formation of the rising pattern with the target in the area of 56.40. The price testing the trend’s rising line at the RSI is an additional signal of the growth, we should expect the price to start moving upwards.