Forecast for July 27th, 2011
The EUR/USD currency pair has left the descending channel and right now we can see the formation of the rising symmetrical pattern with the general target in the area of 1.4913. We should expect the price to test the channel’s upper border in the area of 1.4755, then to be corrected to the level of 1.4523 where one can consider buying Euro during a long term period. If the price breaks the rising channel’s lower border and leaves it, this case scenario will be cancelled.
Pound has also reached new maximum and broken the descending channel’s upper border at the daily chart. At the moment we should expect the pair to grow into the area of 1.6620. This area is expected to be a starting point of the fall to the level of 1.6435 where the 5th point of reference is formed. The final target of the growth is the area of 1.6775.
We may assume that New Zealand Dollar has reached the area of the 4th
point of reference. Near the level of 0.8890 we should expect the price to be corrected to the channel’s lower border in the area of 0.8087. The general target of the growth is the area of 0.9375. Take into account the fact that it’s a weekly timeframe, that’s why the formation of the pattern may take several weeks, or may be even months. But if the breaks the channel’s lower border, this case scenario will be cancelled.
Australian Dollar is moving according to the forecast. At the moment we should expect the price to test the broken neckline in the area of 1.0780. One can consider selling the AUD/USD currency pair with the tight stop rom this area. The target of the growth is the level of 1.1150. But if the price breaks the neckline of “head & shoulders” reversal pattern and leaves the rising channel, this case scenario will be cancelled.