Forex Technical Analysis 2011/31/05 (EUR/USD, GBP/USD, USD/CHF, AUD/USD) Forecast FX

Forecast for May 31^st, 2011

EUR/USD

The EUR/USD currency pair has reached the targets of the rising pattern, and at the moment we should expect it to fall. The price breaking the trend’s rising line at the RSI is an additional signal to sell the pair. The target of the fall is the area of 1.4090, which is a similar line at the price chart. One can consider selling the pair only after the price leaves the channel. But if the price grows higher than 1.4315, this case scenario will be cancelled.

GBP/USD

In case of the GBP/USD currency pair the situation is similar. The trend line is broken at the RSI, we should expect Pound to fall into the area of 1.6300. One can consider selling the pair only after the price breaks the rising channel. The stop must be above 1.6520.

USD/CHF

Franc is moving inside the symmetrical descending pattern with the general target in the area of 0.8408. Currently we can expect the pair to be corrected to the level of 0.8595, where one can try to sell it. If the price breaks the channel’s upper border and leaves it, this case scenario will be cancelled.

AUD/USD

Australian Dollar has reached the area of the 5^th point of reference, which is expected to be a starting point of the fall into the area of 1.0245. One can try to sell the pair with the tight stop. If the price leaves the descending channel, this case scenario will be cancelled.