Weekly Report 5 - 9 / July / 2010

The pair was able to insure a breach of the neckline at 1.2470 to activate the bullish technical pattern shown in our previous reports, where it succeeded in surpassing resistance for the main bearish channel shown above. The pair is presently facing a hard time in breaching 38.2% Fibonacci correctional levels, whilenegative signs appearon momentum indicators; therefore, we could witness some fluctuation and retesting actionfor the previously broken neckline before heading toward achieving more bearish overall direction this week. The awaited technical targets will start at 1.2780 then 1.3000, but keep in mind that the breach of 1.2375 holds the keys that will make the suggested bullish trend fail.

The trading range for today is among the key support at 1.2300 and the key resistance at 1.3000.

The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.

Previous ReportSupport1.24701.24001.23701.23001.2270Resistance1.25651.26001.26701.27001.2745RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.2470 targeting 1.2670 and stop loss below 1.2370, might be appropriate.