Weekly Report (July 4-8, 2011)

The pair maintained its stability above 50% Fibonacci correction and the MA 50 and accordingly we see the chance for the pair to resume the upside move for this week targeting the main resistance for the descending correctional channel at 1.6310 which resides with the retest for the breached support for the main ascending channel. We have a minor bullish formation with the neckline at 1.6105 which will support the upside move. Breaching areas of 1.6000 will weaken the suggested scenario.

The trading range for this week is among the major support at 1.5880 and the major resistance at 1.6415.

The short-term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.

RecommendationBased on the charts and explanations above we recommend buying the pair with hourly closing above 1.6105 targeting 1.6310 and stop loss below 1.6000 might be appropriate this week