Weekly Report 12/07 -16/ 07 / 2010

The pair succeeded in penetrating the Fibonacci level of 23.6% for the descending rally that started at 125.95 zones and was bottomed out at 107.25 areas, seen on the provided daily chart. The recently established secondary ascending channel could send the pair upwards towards 38.2% Fibonacci at 114.40 zones. AROON crossed over positively while RSI 14 moved to the upside during the previous week but it still has northern targets to be reached. Therefore, potential upside movements could be witnessed during this week.

The trading range for this week is among key support at 107.25 and key resistance now at 115.75.

The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.

Previous Report

Support111.60111.35110.50110.00109.45Resistance112.80113.15114.00114.40115.75RecommendationBased on the charts and explanations above our opinion is, buying the pair around 111.65 targeting 114.40 and stop loss below 109.45 might be appropriate.