Weekly Report 29/08 -02/ 09/ 2011

The pair declined again to reach the support at 38.2% Fibonacci correction as shown above. This movement suggests that the bearishness could extend further, while a breach of the correction at 0.9780-60 should confirm our negative expectations. Stochastic is within oversold areas, which could lead heavy fluctuations and maybe some upside corrections, but in general, stability below 0.9910 supports the possibility of completing the downside correction.

The trading range for today is among the major support at 0.9535 and the major resistance at 1.0010.

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 selling the pair around 0.9830, targeting 0.9635 and stop loss with 4-hour closing above 0.9925 might be appropriate.