Weekly Report (15-19 August 2011)
The pair retested the previously breached 76.4% Fibonacci level again at 110.25, where trading is settled below the breached pivotal support at 113.65 in addition to the negative pressure from the 50 EMA, thus we expect the downside bias to continue during the upcoming days. Positivity on momentum indicators may resist the downside move and lead to some fluctuations.Targets start at 106.10, however a breach of 110.25 may delay achieving the awaited target and extend the move to 11.20 and possibly 111.85.
Trading range for the week is among the major support at 106.10 and the major resistance at 111.85.
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 we recommend selling the pair around 110.25 targeting 107.55 and stop loss with four-hour closing above 111.20 may be appropriate.|