Weekly Report 09 - 13 / August / 2010

The pair has currently retested the previously breached neckline at 1.0275 after bullishly rebounding from 1.0135 that has formed the neckline for the largest bearish technical pattern, accompanied by current trading near momentum indicators from overbought areas; whereas the MA 50 is negatively pressuring the pair to form a roof for the short term trading. These factors encourage us to expect a bearish trend this week; targeting 1.0135 in an attempt to it and pave the way towards the short term direction at 0.9925. Keep in mind the importance of stability below 1.0385 to maintain chances of achieving these expectations.

The trading range for today is among the key support at 0.9925 and the key resistance at 1.0470.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.0275 targeting 1.0135 and stop loss above 1.0385, might be appropriate.