Weekly Report 18/07 -22/ 07/ 2011

The pair is consolidating at the previously breached resistance at 0.9530 as shown above. Stability above this level, support our expectations for a likely upside move for this week. Stochastic supports our expectations, but on the other hand, the MA 50 around 0.9680 is a primary obstacle against the suggested upside move. Consolidation above 0.9440 -shown above- keeps the suggested upside move valid.

The trading range for today is among the major support at 0.9350 and the major resistance at 0.9970.

The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair with around 0.9545 targeting 0.9810 and stop loss below 0.9445 might be appropriate this week.