Weekly Report 19 - 23 / July / 2010

The pair rushed to the upside yet this ascend halted at 76.4% Fibonacci correction from the second top, mentioned in our reports last week. This stop was accompanied by momentum indicators entering overbought areas, which maintains chances of achieving the previously suggested bearish trend scenario intact. This week we expect an overall bearish directiontargeting 1.0275 then 1.0135, but keep in mind that these expectations require daily closing to remain below 1.0675 to prevail.

The trading range for today is among the key support at 1.0135 and the key resistance at 1.0745.

The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.

Previous ReportSupport1.05201.04251.03401.02751.0210Resistance1.05801.06351.06701.07451.0825RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.0580 targeting 1.0425 and stop loss above 1.0675, might be appropriate.