Weekly Report 16 - 20 / August / 2010

The pair succeeded at achieving a sharp descend, where it has halted at pivotal support 1.2730 that represents the suggested neckline for the bearish technical pattern, which could help resume more bearish movement on the short run. However, before we can expect a bullish correction to dominate the pair's trading, which may reach levels around 1.2900, supported by clear oversold signs appearingon momentum indicators. In overall, we expect a bearish direction for this week that will initially start with the breach of 1.2730 to head towards 1.2470 as the primary target. Keep in mind that the breach of 1.2950 and building a base above it will weaken chances of achieving this scenario.

The trading range for today is among the key support at 1.2470 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 Report

RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.2730 targeting 1.2570 and stop loss above 1.2840, might be appropriate.