Weekly Report (18-22/July/2011)
The pair's stability below the previously breached horizontal support at 113.65 is a good sign that the expected downside movement may continue during the upcoming period. Examining the image above, we can notice the last correction level 76.4% at 110.25 is the key for confirming more downside movement over the short term. The general bias is to the downside and supported by the 50 EMA. Therefore, we expect downside move during the week and the main target resides at 107.10 followed by 106.15 while breaching 113.65 shall invalidate our suggested scenario.
Trading range for the week is among the major support at 106.15 and the major resistance at 114.85
The short term trend is to the downside targeting 100.00, as long as 123.30 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 111.90 targeting 107.10 and stop loss above 113.65 may be appropriate.|