Weekly Report 23 - 27 / August / 2010

The pair continues stabilizing below support for the previously breached bullish channel, where it has taken up a bearish path within the descending minor channel shown above. We might witness some upside movement that will touch this channel's resistance around 1.5650, but keep in mind that the clear overbought signs appearing through momentum indicators encourage us to resume the expected bearish trend for this week; targets start at 1.5450 then attempt to breach it to pave the way towards 1.5185. The bearish trend will continue requiring the daily closingto bebelow 1.5685.

The trading range for today is among the key support at 1.5185 and the key resistance at 1.5740.

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 selling the pair around 1.5650 targeting 1.5450 and stop loss above 1.5740, might be appropriate.