Forex Technical Analysis 2011/25/10 (EUR/USD, GBP/USD, NZD/USD, CAD/JPY) Forecast FX

Forecast for October 25^th, 2011

EUR/USD

The EUR/USD currency pair keeps moving inside the descending channel. The market is testing the area for sales, we should expect the start of the descending movement with the target in the area of 1.2740. One can try to sell the pair with the tight stop. If the price breaks the upper border and leaves the channel, this case scenario will be cancelled.

GBP/USD

Pound is also moving inside the descending pattern, the target of the fall is the area of 1.5145. One can consider selling the GBP/USD currency pair with the tight stop. If the price breaks the upper border and leaves the channel, this case scenario will be cancelled.

NZD/USD

New Zealand Dollar got very close to the descending channel’s upper border, we should expect the pair to fall to the level of 0.7195. If the price grows higher than 0.8155, this case scenario will be cancelled. One can try to sell the pair with the tight stop, we recommend to increase the amount of short positions only after the price breaks the level of 0.7870.

CAD/JPY

Canadian Dollar keeps moving inside the descending pattern with the target of the fall in the area of 67.80. By now the market has defined the area for the 5^th pivot point. One can consider selling the CAD/JPY currency pair with the tight stop. If the price breaks the upper border and leaves the descending channel, this case scenario will be cancelled.