Forecast for April 20th, 2011EUR/USD
In case of the EUR/USD currency pair we can see the formation of the descending symmetrical pattern with the target in the area of 1.4136. The price is testing the channel’s upper border, one can try to sell the pair with the tight stop. If the price breaks and leaves the channel, this case scenario will be cancelled.
Pound also keeps moving inside the descending channel, the target of the fall is the area of 1.6106. The price testing the trend’s descending line at the RSI is an additional signal to sell the pair. If the price breaks the channel’s upper border, this case scenario will be cancelled.
In case of USD/CHF currency pair we have “head & shoulders” reversal pattern forming with the target in the area of 0.9093. One can try to buy the pair with the stop below 0.8955 and consider increasing the amount of long positions only after the price breaks the neckline.