Weekly Report 25/07 -29/ 07/ 2011

During the past week, the downside trend was limited between the support at 0.9445 and 0.9400; where as shown above, these levels are potential reversal zones of the bullishAB=AB pattern, which supports the pair now to move toward the first target of 38.2% Fibonacci correction of the CD leg at 0.9560. But, SMA 50 is at 0.9535 and Stochastic is within overbought areas, which may force negative pressures and could lead heavy fluctuations. In general, we expect an upside trend for this week, but a breach of 0.9560 is required for the upside trend to extend, where stability above this level could push the pair toward 0.9640 in stages. A breach of 0.9400 should negate our expectations.

The trading range for today is among the major support at 0.9300 and the major resistance at 0.9770.

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 around 0.9480 targeting 0.9640 and stop loss below 0.9400 might be appropriate this week.