Weekly Report (15-19 August 2011)
The pair maintains stability above the retest resistance level of the breached rising wedge formation at 0.8710, and this is a positive sign that push us to hold onto our positive expectations in general. The 50 EMA and stochastic are providing negative signs that may push the pair to retest the aforementioned level before heading toward the awaited targets that start at 0.8885 followed by 0.9000. Steady daily closing below 0.8710 is required for our expectations to remain possible.
Trading range for the day is among the major support at 0.8665 and the major resistance at 0.8975.
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 buying the pair around 0.8710 targeting 0.8975 and stop loss below 0.8610 may be appropriate.|