Weekly Report (02-06 August)

The pair started serious attempts at breaching the neckline for the negative pattern shown in our previous report at 1.0275; where momentum indicators are providing more negative signals alongside stabilizing below 50 Days MA. Therefore, we expect a downside move this week targeting initially 1.0135 which is the basis for the short term direction, as breaching it extends the downside move.

The trading range for this week is expected between the support at 1.0000 and the resistance at 1.0470.

The short term trend is to the upside as far as areas of 0.9925 remain intact targeting 1.1485.

RecommendationBased on the charts and explanations above our opinion is selling the pair with stability below 1.0275 targeting 1.0135 and stop loss above 1.0385 might be appropriate this week