Forecast for May 12th, 2011
The EUR/USD currency pair keeps moving inside the narrow range. At the moment we should expect the price to break the rising channel and start falling with the target in the area of 1.4165. The price breaking the trend’s rising line at the RSI is an additional signal to sell Euro. One can try to sell it with the tight stop above 1.4400.
Franc has left the descending channel and the area for sales. Currently one can consider buying the USD/CHF currency pair, the target of the growth is the area of 0.8935. The stop must be below 0.8780. If the price breaks the rising channel’s lower border, this case scenario will be cancelled.
New Zealand Dollar is still expected to fall even deeper. The RSI indicator is moving inside the descending channel and at the moment is testing the upper border. We should expect the RSI and the price to fall. One can try to sell the NZD/USD currency pair with the stop above 0.7985. The target of the fall is the area of 0.7625.
At the daily chart of the Canadian Dollar we have “head & shoulders” reversal pattern forming with the target in the area of 0.9985. One can try to buy the pair with the tight stop at current prices. If the price falls lower than 0.9430, this case scenario will be cancelled. The closest target of the growth is the level of 0.9875.
In case of Australian Dollar we have “failure swing” reversal pattern forming with the target on the area of 1.0595. One can try the tight stop sales. Don’t forget to move stop into the black as soon as possible.