Weekly Report 16 - 20 / August / 2010

The 76.4% Fibonacci correctional levelmaintains its stance in front of the pair's ascending and currently meeting with resistance for the bearish channel at 1.0490 that organizes intraday trading. Momentum indicators are showing negative signs that make us expect a bearish direction reaching initial targets around 1.0135. Keep in mind that breaching 1.0490 and achieving a daily closing above it will pave the way towards resuming the bullish wave that the pair has started from 1.0105 in the beginning of this month.

The trading range for today is among the key support at 1.0135 and the key resistance at 1.0675.

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 1.0490 targeting 1.0345 and stop loss above 1.0600, might be appropriate.