Weekly Report 23 - 27 / August / 2010

The pair stabilized trading above the resistance for the bearish channel after the pair succeeded in breaching it on Friday, where it has currently turned into support at 1.0440 since we expect the pair to head to retest it due to the negative signs on momentum indicators appearing on the four hour chart. The closing last Friday closed above this level, alongside surpassing SMA 50 are factors that make us expect a bullish overall trend this week; targeting 1.0590 then 1.0675, but keep in mind the importance of the closing stabilizing above 1.0380 to maintain chances of achieving these expectations.

The trading range for today is among the key support at 1.0315 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 Report

RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.0440 targeting 1.0590 and stop loss below 1.0370, might be appropriate.