Weekly Report 23 - 27 / August / 2010

The pair was able to complete forming the expected bearish technical pattern in our last reports, achieving the daily and weekly closing below the breached neckline at 1.2730; therefore, making us to expect a bearish direction for this week that will witness some fluctuation and minor bullish correction due to the positive affect of momentum indicators. We point out that technical targets start at 1.2470 then 1.2350, while the daily closing must be below 1.2820 to achieve targets.

The trading range for today is among the key support at 1.2350 and the key resistance at 1.2950.

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 around 1.2730 targeting 1.2570 and stop loss above 1.2840, might be appropriate.