Forecast for May 4th, 2012
The EUR/USD currency pair is moving according to our forecast. As we expected, it was corrected to the level of 1.3170 and then started moving downwards. Currently the price is forming the descending pattern with the target in the area of 1.3080. Aggressive traders are advised to sell the pair from the current levels with the stop above 1.3160. If Euro grows up higher than 1.3180, this scenario will be cancelled. In this case we should expect the price to break “triangle” pattern upwards. One can consider selling the pair while it is moving inside the descending channel.
The GBP/USD currency pair hasn’t grown up much. However, right now the price is very close to the ascending channel’s lower border, we should expect it to rebound from the current levels in an upward direction. The test of the trend’s ascending line at the RSI at the H4 chart is an additional signal to buy Pound, one can consider buying it after the price breaks the level of 1.6195. The closest target of the growth is the area of 1.6315. If the price falls down lower than 1.6140, this scenario will be cancelled.
The USD/CHF currency pair has also grown up a bit. At the daily chart of the pair the RSI indicator faced the resistance form the trend’s descending line, it may rebound from the current levels in a downwards direction. One can consider selling the pair after the price breaks the level of 0.9125, but we recommend to avoid buying it.
Australian Dollar is trying to reach a new local minimum. The trend’s ascending line at the RSI is a strong support level. The structure of the price movement at the H4 chart looks like the ascending pattern with the target in the area of 1.0495. One can consider buying the pair with the tight stop near the level of 1.0270. If the price falls down lower than 1.0235, this scenario will be cancelled.