Weekly Report (01-05/08/2011)
The pair settled below the ascending support of the rising wedge formation shown in image by closing last week below the level, and this adds more confimation to our expectations for a downside move this week. For now, we need a clear breach of 0.8750 and stability below it to activate the effect of the bearish technical pattern which targets initially 0.8555. Breaching 0.8830 may delay the suggested scenario and lead to some intraday bullishness.
Trading range for the week among the major support at 0.8555and the major resistance at 0.8900.
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 we recommend selling the pair with four-hour closing below 0.8750 targeting 0.85555 and stop loss above 0.8830 may be appropriate.|