Weekly Report (18-22/July/2011)
Over daily basis, we can see the pair is confined within a negative rising wedge formation and the support of the formation resides at 0.8730 this pattern has formed within the short term ascending channel. The mentioned negative pattern besides the pressure from the 50 day EMA push us to expect a breach of the aforementioned support which will open the door toward the ascending support of the channel near 0.8555 and there we should monitor the pair carefully. To summarize, we expect a downside bias at the beginning of the week and breaching 0.8555 shall extend the downside move to initially target 0.8350 , while breaching 0.8845 will push the pair to move again within the main upside trend.
Trading range for the week is among the major support at 0.8500 and the major resistance at 0.8940
The short term trend is to the upside targeting 1.0370, as long as 0.8165 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair with four-hour closing blow 0.8730 targeting 0.8555 and stop loss above 0.8840 may be appropriate.|