Weekly Report(22-26 August 2011)
The pair maintains stability above the resistance of the breached falling wedge after successfully retesting the level. In addition to that, stochastic is providing positive signs over daily basis, which support the positive effect from the wedge. Therefore, we expect a bullish move this week, targeting initially 0.8885 and 0.9000. While steady daily closing above 0.8640 is required for our expectations to remain valid.
Trading range for the week is among the major support at 0.8565 and the major resistance at 0.9000.
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 with four-hour closing above 0.8785 targeting 0.8885 and 0.9000. Stop loss below 0.8705 may be appropriate.|