Weekly Report (July 11-15, 2011)

The pair declined sharply during the past week, after it reversed to the downside from MA 50 levels on Friday. Currently, the pair is approaching 38.2% Fibonacci correction, which is around the minor support at 1.4150 as shown above on the chart. Breaching the mentioned correction may extend the downside trend, testing the 50% correction at 1.3910. Stochastic is within oversold areas, which may cause sharp fluctuations before continuing the bearishness.

The trading range for this week is among the major support at 1.3775 and the major resistance at 1.4455.

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

Previous report

RecommendationBased on the charts and explanations above our opinion is selling the pair with four-hour closing below 1.4150 targeting 1.3910 and stop loss with four-hour closing above 1.4255 might be appropriate