Forex Technical Analysis 2011/19/05 (EUR/USD, GBP/USD, NZD/USD, USD/CAD, AUD/USD) Forecast FX

Forecast for May 19^th, 2011

EUR/USD

In case of the EUR/USD currency pair we are still expecting the price to fall into the area of 1.39. At the moment one should consider selling the pair, the price breaking the trend’s rising line at the RSI is a signal to sell. The closest target of the fall is the area of 1.3985, the stop must be above 1.4250.

GBP/USD

Pound is moving according to the forecast. If the price is corrected to the level of 1.6205, one can consider selling the pair. The target of the fall is the area of 1.5914. But if Pound grows higher than 1.6285, this case scenario will be cancelled.

NZD/USD

In case of the NZD/USD currency pair we can see the formation of the descending pattern with the target in the area of 0.7496. At the moment the price is near the 5^th point of reference, which may be a starting point of the fall. The price testing the trend’s descending line at the RSI is an additional sign of the fall.

USD/CAD

Canadian Dollar managed to fix itself above the neckline and one should consider buying the USD/CAD currency pair. “Head & shoulders” pattern will probably be completely formed in the area of 0.9985. But if the price falls lower than 0.9500, this case scenario will be cancelled.

AUD/USD

Australian Dollar is moving inside the descending channel. The target of the fall is the area of 1.0330. One can try to sell the pair with the stop above 1.0635, but shouldn’t forget to move stop into the balck as soon as possible.