Forecast for July 5th, 2011
The EUR/USD currency pair keeps moving inside the “triangle” uncertainty pattern, but hasn’t broken it upwards yet. Currently at the H4 chart we have “failure swing” reversal pattern forming at the RSI with the target in the area of 1.4475. If the price breaks the trend’s rising line at the RSI, we should expect the pair to fall to the “triangle’s” lower border. But if the pattern is broken upwards, this case scenario will be cancelled.
Pound is moving according to the forecast inside the descending pattern with the general target in the area of 1.5800. Currently at the hourly chart of the pair we have “head & shoulders” reversal pattern forming with the target in the area of 1.5988. One is recommended to increase the amount of short positions only after the price leaves the rising channel.
In case of NZD/USD currency pair we have “failure swing” reversal pattern forming, the target of the fall is the area of 0.8247. If the price breaks the trend’s rising line at the RSI, we should expect New Zealand Dollar to fall into the area of 0.8045. But if the pair grows higher than 0.8325, this case scenario will be cancelled.
Australian Dollar is moving like other currency pairs, we should also expect the price to move downwards into the area of 1.0696. The next target is at the level of 1.0615. If the pair grows higher than 1.0775, this case scenario will be cancelled. One should also note that there is some potential for “head & shoulders” reversal pattern to be formed. In this case, the target of the fall will be 1.0570.