Forex Technical Analysis 2012/22/05 (EUR/USD, GBP/USD, USD/CHF, AUD/USD) Forecast FX

21.05.2012

Forecast for May 22nd, 2012

EUR/USD

The EUR/USD currency pair is being corrected right now, there is still a possibility that it may continue falling down. At the H1 chart the price is forming “head & shoulders” reversal pattern, one can consider selling Euro from the current levels with the stop above 1.2785. The closest target of the fall is the area of 1.2685. We recommend to increase the amount of sales only after the price breaks the level of 1.2750. If the pair grows up higher than 1.2815, this scenario will be cancelled. The test of the trend’s descending line at the RSI at the H4 chart is an additional signal of the fall. We should note that the area of 1.2680 may be a starting point of the correction to the level of 1.29.



GBP/USD

The GBP/USD currency pair has also been a bit corrected to the level of 1.5840. Currently we should expect the pair to continue falling down. At the H1 chart the price is forming “triangle” pattern, one can consider selling Pound with the tight stop after the pair breaks the pattern’s lower border and the level of 1.5790. The closest target of the fall is the area of 1.5730, the target of the descending pattern is the area of 1.5665. If Pound grows up higher than 1.5845, this scenario will be cancelled.



USD/CHF

The USD/CHF currency pair has also been corrected, and now we have some good levels to buy the pair. At the M15 chart the price is forming “upside down head & shoulders” reversal pattern. One can consider buying the pair from the current levels with the stop below 0.9390, the target of the pattern is the area of 0.9465. We recommend to increase the amount of purchases only after the price breaks the level of 0.9420. In Franc falls down lower than 0.9375, this scenario will be cancelled. The test of the support level at the RSI is an additional signal to buy the pair. After the price completes forming the reversal pattern, we should expect the pair to be corrected into the area of 0.9320, and then it may start moving upwards again.



AUD/USD

At the M30 chart Australian Dollar is moving inside “triangle” pattern, one can consider aggressive sales from the current levels. The target of the fall is the area of 0.9720, the stop must be placed above 0.9875. Conservative traders are advised to wait until the price breaks the pattern’s lower border and then try to open short positions. If the pair grows up higher than 0.9885, this scenario will be cancelled.

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

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