Forex Technical Analysis 2011/26/05 (EUR/USD, GBP/USD, USD/CHF, GOLD) Forecast FX

Forecast for May 26^th, 2011

EUR/USD

The EUR/USD currency pair is still being corrected and there is some potential for the price to move downwards. The price has left the descending channel, one can consider selling the pair with the tight stop. The closest target of the fall is the area of 1.3791. The price testing the resistance line at the RSI is an additional signal to sell the pair. But if the price grows higher than 1.4135, this case scenario will be cancelled.

GBP/USD

Pound keeps moving inside the descending channel, the target of the fall is the area of 1.5780. At the moment the price is testing the channel’s upper border. One can consider selling the GBP/USD currency pair. If the price breaks the channel and leaves it, this case scenario will be cancelled.

USD/CHF

Franc is moving inside the descending channel. After the price leaves the channel, one can consider buying the pair during a long term period. Currently one can try to buy the pair with the tight stop. The price testing the trend’s rising line at the RSI is an additional signal to buy the pair. But if the price reaches a new local minimum in the area of 0.8725, this case scenario will be cancelled.

GOLD

At the weekly chart of GOLD there are first signs of a possible reverse. The price is moving inside the rising channel, however the RSI is inside sideways range. We should expect GOLD to break the support level and move downwards into the area of 1260. At the RSI we also have “head & shoulders” reversal pattern forming. One can try to sell GOLD with the tight stop.