Forecast for May 27th, 2011
The pattern, which is being formed at the moment, may be a descending one with the target in the area of 1.3820. Currently we should expect the price to grow to the level of 1.4250, and consider selling the pair near the descending channel’s upper border. If the pair grows higher than 1.4270, this case scenario will be cancelled and we will recommend you to close short positions.
Pound has left the descending channel. At the moment we should expect the pair to grow into the area 1.6410. One can consider selling Pound from this area with the target of 1.6180. We will not recommend you to open short positions until the price leaves the rising channel.
In case of Canadian Dollar we have “head & shoulders” reversal pattern forming with the target in the area of 0.9692. One can either try to sell the pair with the tight stop aggressively, or wait until the price breaks the neckline. The stop must be above 0.9820.
Australian Dollar is moving inside the rising channel, the target of the growth is the area of 1.0670. One can try to buy the pair with the tight stop. If the price breaks the rising channel’s lower border, this case scenario will be cancelled. The area of 1.0670 may be a starting point of the descending movement.