Weekly Report 19 - 23 / July / 2010

The pair halted its upside rush at 61.8% Fibonacci correction and seems to have indulged in a minor bearish correction, affected by the negativity on momentum indicators over daily basis. We can expect a retest for the previously breached 50% Fibonacci at 1.2780 before resuming the expected bullishness for this week, where upcoming targets are around 1.3260. The breach of 1.2780 - 1.2740 and building a base below it will weaken chances of achieving the awaited bullish targets.

The trading range for today is among the key support at 1.2600 and the key resistance at 1.3360.

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

Previous ReportSupport1.28201.27801.27401.26801.2600Resistance1.29901.30251.30901.31651.3190RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.2780 targeting 1.2990 and stop loss below 1.2680, might be appropriate