Forex Technical Analysis 2011/24/08 (EUR/USD, GBP/USD, USD/CHF, DAX) Forecast FX

Forecast for August 24^th, 2011

EUR/USD

The EUR/USD currency pair is moving according to the forecast. However, at the moment there is some risk that Euro may fall down into the area of 1.4200. The price is testing the trend’s descending line, which is a resistance level here. One can consider selling the pair with the tight stop above 1.4505. The price testing the resistance line at the RSI is an additional signal to sell the pair, and it also indicates that Euro may fall. But if the price grows higher than 1.4515, this case scenario will be cancelled.

GBP/USD

Pound keeps moving inside “head & shoulders” reversal pattern. The price had almost reached the area of 1.6580, and then the pair started falling down. One can try to sell the pair with the tight stop above 1.6580. We recommend you to increase the amount of short positions only after the price breaks the level of 1.6415. But if the pair grows higher than 1.6615, this case scenario will be cancelled.

USD/CHF

Looking at the chart of the USD/CHF currency pair we may assume that the “triangle”, a pattern of continued trend, is being formed at the moment. One can consider buying the pair near the pattern’s lower border and increasing the amount of long positions only after the price leaves the pattern. The target of the growth is the area of 0.8150. But if the pair falls lower than 0.7780, this case scenario will be cancelled.

DAX

At the H1 chart of DAX we can see the formation of expansion pattern with the target in the area of 5260. We should expect the price to continue falling down after it breaks the rising channel’s lower border. Right now one can try to sell DAX with the stop above 5654 and consider increasing the amount of short position only after the price breaks the level of 5436.