Weekly Report (01-05/08/2011)
The 76.4% Fibonacci retracement supported trading very well and pushed the pair toward the 61.8% level at 112.80. In general, the latest breach of 113.65 hints to potential downside targets, and this is supported by the 50 EMA. Therefore, expect a downside move for this week which requires a breach of 110.25 to target 109.55 and 108.75. Breaching 112.80 may delay the awaited targets.
Trading range for the week is among the major support at 108.75 and the major resistance at 113.65.
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 we recommend selling the pair around 112.80 targeting 110.25 and stop loss above 113.65 may be appropriate.|