Forex Technical Analysis 2011/20/05 (EUR/USD, GBP/USD, USD/CHF, NZD/USD) Forecast FX

Forecast for May 20^th, 2011

EUR/USD

The EUR/USD currency pair hasn’t started falling yet. Currently the price is moving inside the rising channel and we can see the formation of “head & shoulders” reversal pattern with the target in the area of 1.4098. One can consider selling the pair with the tight stop at current prices and increasing the amount of short positions after the price breaks the neckline.

GBP/USD

Pound is moving inside the descending pattern with the target in the area of 1.6090. One should consider the tight stop sales. But if the price breaks the descending channel’s upper border and leaves it, this case scenario will be cancelled.

USD/CHF

In case of Franc we can see the formation of the pattern which may be a symmetrical rising one. The closest target of the growth is the level of 0.9185 where the 4^th point of reference is formed. One can try to buy the pair after the price breaks the descending channel. The stop must be below 0.8765.

NZD/USD

At the hourly chart New Zealand Dollar has broken the trend’s rising line at the RSI, thus indicating the test of the similar trend line at the price chart. One can try to sell the pair with the tight stop, the target of the fall is the area of 0.7795.