Weekly Report 16 - 20 / August / 2010

The pair successfully reached support for the key bullish channel shown above at 1.5560, which meets with 50% Fibonacci correction and accompanied by stochastic entering oversold areas; therefore, providing a chance for a bullish rebound that pushes the pair to the upside, but in return the negative formation could cause more negative pressure to breach the current support and retest the previously broken neckline that has currently turned into support at 1.5450. These signs make us recommend observing upcoming reports to obtain more accurate signs for the upcoming direction, where the breach of 1.5705 and stabilizing above it adds more strength to chances of continuing the expected bullish wave that according to its nature will start trading within price channels.

The trading range for today is among the key support at 1.5280 and the key resistance at 1.6030.

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

Previous Report

Support1.55601.55151.54501.54101.5360
Resistance1.56001.56501.57051.57851.5815
RecommendationBased on the charts and explanation above our opinion is observing the pair’s movement to insure its upcoming direction.