Forex Technical Analysis 2011/26/08 (EUR/USD, GBP/USD, AUD/USD, OIL) Forecast FX

Forecast for August 26^th, 2011

EUR/USD

The EUR/USD currency pair keeps moving inside a very narrow range. At the moment we should expect the price to break the “triangle” pattern downwards, and after it moves below the pattern’s lower border one can consider selling the pair with the tight stop. The target of the fall is the area of 1.4240. But if the price breaks the level of 1.4475, this case scenario will be cancelled.

GBP/USD

The GPB/USD currency pair is moving according to the forecast, at the moment we can see the formation of the descending pattern with the target in the area of 1.6285. The price is testing the channel’s upper border, one can try to sell the pair with the tight stop above 1.6395. But if the price breaks the channel and leaves it, this case scenario will be cancelled.

AUD/USD

Australian Dollar is moving inside the descending pattern. The price has reached the area of the 5^th point of reference, which may be a starting point of the descending movement into the area of 1.0415. The stop must be above 1.0490.

OIL

Oil is still moving inside the rising channel. However, at the moment we have “head & shoulders” reversal pattern forming with the final target in the area of 82.75. One can consider selling the instrument only after the price breaks the neckline, the stop must be above 85.75.