Weekly Report (July 4-8, 2011)

Trading stabilized above the resistance for the descending correctional channel shown above. The stability and the support offered by the MA 50 and the previously completed bullish pattern with the breach of its neckline shown in red. All those factors support our expectations for a bullish move this week targeting 1.4700 then 1.4950. Stability above 1.4495-40 is required for our expectations to prevail.

The trading range for this week is among the major support at 1.4375 and the major resistance at 1.4940.

The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.

RecommendationBased on the charts and explanations above we recommend buying the pair around 1.4495 targeting 1.4695 and stop loss below 1.4375 might be appropriate this week