Forecast for July 20th, 2012
The EUR/USD currency pair is moving inside the descending channel, but at the moment the price is growing up. A very strong resistance level is the area of 1.2350, where one can consider selling the pair with the stop above 1.2385. The target of the pattern is the area of 1.2080. Right now one is advised either to stay out of the market or try to buy the pair aggressively up to the level of 1.2350.
The GBP/USD currency pair has grown up a bit and broken the channel’s upper border. At the H1 chart the price is forming the ascending pattern, one can consider buying Pound from the current levels with the tight stop below 1.5625. The target of the pattern is the area of 1.5800.
Despite our expectations the USD/CHF currency pair continues falling down. A very strong support level is the area of 0.9725, where one can consider buying the pair. The closest target of the growth is the area of 0.9910. We recommend to increase the amount of purchases only after the price breaks the level of 0.9805. If the price falls down lower than 0.9695, this scenario will be cancelled. At the moment one is advised either to stay out of the market.
Australian Dollar has grown up a lot. At the moment the price is testing the ascending channel’s upper border, we should expect it to rebound from the current levels. The target of the fall is the support level in the area of 1.0310, one can consider selling the pair aggressively with the tight stop. If the price breaks the channel’s upper border and grows up higher than 1.0470, we should expect the pair to continue moving upwards.
New Zealand Dollar has also grown up and tested the area of 0.8050. Right now this area is the last resistance level that prevents the price from forming the reversal pattern. If the price continues growing up, “head & shoulders” reversal pattern will not be formed. At the moment one can consider selling the pair aggressively near the level of 0.8050 with the stop above 0.8065. If the price continues falling down and breaks the level of 0.7860, one can consider opening new sell orders. The closest support level is the area of 0.80.