Forecast for May 10th, 2011
The EUR/USD currency pair keeps falling down. Judging by the current price structure, we should expect the price to continue downward movement to the level of 1.4050. If the price leaves the descending channel, this case scenario will be cancelled. One can try the tight stop sales. Don’t forget to move stop into the black as soon as possible.
Pound is moving inside the descending channel, one can consider opening short positions with the tight stop. The target of the fall is the area of 1.6200. If the price leaves the channel, we will recommend you to stop selling the pair.
In case of Franc we should expect the price to be corrected to the level of 0.8640, one can try to sell the USD/CHF currency pair with the stop above 0.8790. The closet target of the fall is the area of 0.8686. Then we should expect a further correction to the channel’s upper border and a final falling wave. If the price breaks the channel’s upper border, this case scenario will be cancelled.
At the weekly chart of the EUR/GBP currency pair we can see the formation of the descending pattern with the target in the area of 0.7665. At the moment the pair is testing the channel’s upper border, we should expect the price to hit it and start moving downwards.
At the daily chart the targets of the rising symmetrical pattern have been reached. After the price leaves the channel one can consider selling the pair with the stop above 0.9015 during a long term period.