Weekly Report 09 - 13 / August / 2010

The pairapproaches 1.6000 levelsas it continues to fluctuate near resistance for the bullish channel, where it is finding difficulty in surpassing this resistance due to the negative effect of momentum indicators appearing on the daily image above. Some minor bearish movement is expected to retest the previously breached 61.8% Fibonacci correction at 1.5870, before heading towards resuming the expected bullish trend for this week; targeting 1.6260 then 1.6360. We point out that the daily closing below 1.5870 will weaken chances of an expected upside direction that may push for to the downside to reach 1.5700 initially.

The trading range for today is among the key support at 1.5700 and the key resistance at 1.6360.

The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.5870 targeting 1.6025 and stop loss below 1.5785, might be appropriate.