Weekly Report 15/08 -19/ 08/ 2011

The pair is trading within narrow range, but is still stable below SMA 20 and 50, but in the same time the pair is above 23.6% Fibonacci correction as shown on the chart. Consolidation with 4-hour closing below 1.0010 should keep the downside correction valid, while stability below 0.9830 is required to prove the downside movement. A breach of 1.0010 should warn us that the downside correction ended and a sharp upside wave started. Therefore, we will stay neutral in our weekly report, but we recommend observing our next report for more confirmations and explanations.

The trading range for today is among the major support at 0.9535 and the major resistance at 1.0160.

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

Previous Report

RecommendationBased on the chart and explanations above, we recommend observing the pair, waiting for more confirmations.