Forex Technical Analysis 2011/18/05 (EUR/USD, GBP/USD, NZD/USD, USD/CAD, AUD/USD) Forecast FX

Forecast for May 18^th, 2011

EUR/USD

The EUR/USD currency pair keeps moving inside the descending channel, the closest target of the fall is the area of 1.3940. At the moment the price is testing the channel’s upper border, one can try the tight stop sales. If the price breaks the channel’s upper border and leaves it, this case scenario will be cancelled.

GBP/USD

Pound keeps moving inside the descending channel, the target of the fall is the area of 1.5920. The price testing the trend’s descending line at the RSI is a signal to sell the GBP/USD currency pair, we should expect the pair to start moving downwards. If the price leaves the channel, this case scenario will be cancelled.

NZD/USD

New Zealand Dollar is moving inside the descending pattern. Currently we should expect the price to fall to the channel’s lower border in the area of 0.7640 with the following correction to the level of 0.7805 where the 5th point of reference is formed. One can consider selling the NZD/USD currency pair from the area of 0.7805 with the general target in the area of 0.7525.

USD/CAD

At the hourly chart of the USD/CAD currency pair we can see the formation of the rising pattern with the target in the area of 0.9855. One can consider buying the pair with the stop below 0.9730. If the price breaks the rising channel’s lower border, this case scenario will be cancelled and we will recommend you to close long positions.

AUD/USD

Australian Dollar also keeps falling against Dollar. The AUD/USD currency pair is moving inside the descending channel, the target of the fall is the area of 1.0180. At the moment we should expect the price to fall to the level of 1.0300 where the 4^th point of reference is formed. One can consider selling the pair after the price is corrected to the level of 1.0615.