Weekly Report 12 - 16 / July / 2010

The pair neared 50% Fibonacci correction and bearishly reversed due to the effect of the negative signs appearing on momentum indicators. We can expect a base to be built on 1.2565 that represents the previously broken 38.2% Fibonacci correction that has currently turned into support, where it meets with SMA50. This makes us expect the overall bullish trend for this week; targeting 1.2780 then towards 1.3000, requiring mainly the daily closing to beabove 1.2470.

The trading range for today is among the key support at 1.2365 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 ReportSupport1.25651.25051.24701.24001.2365Resistance1.26951.27301.27801.28401.2895RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.2565 targeting 1.2780 and stop loss below 1.2470, might be appropriate.