Forecast for August 22nd, 2011
The EUR/USD currency pair has reached the area defined earlier, but hasn’t broken the rising channel’s lower border. Currently we should expect the price to each new maximum in the area of 1.4567. One can consider buying the pair near the channel’s lower border, the stop must be below 1.4265. But if the price leaves the rising channel, this case scenario will be cancelled.
The current structure of Dollar Index is a descending symmetrical pattern with the target of the fall in the area of 73.13. At the moment the price is near the channel’s upper border, the level of the 5th
point of reference is 74.40. We should expect Index to fall, and, thus the growth of the EUR/USDF currency pair.
At the H4 chart we have “head & shoulders” reversal pattern forming with the target in the area of 1.0845. One can consider selling the pair with the stop above 1.1415 after the neckline is broken, and increasing the amount of short positions after the price breaks the level of 1.1185.
Gold keeps growing. Currently we should expect the quotes to fall to the area of 1800 where one can consider opening long positions with the target at the level of 1918. But if the price breaks the support level in the area of 1785, this case scenario will be cancelled and we will recommend you to close long positions.