Weekly Report (July 11-15, 2011)

We witnessed during the past week heavily sideways fluctuations between the support at 1.5915 and the resistance at 1.6140 without reaching any of them. Stabilizing below the 50% correction at 1.6040 may drive the pair to retest the 61.8% correction at 1.5880, and stabilizing below the previous resistance is required for the negative expectations to remain valid.

The trading range for this week is among the major support at 1.5650 and the major resistance at 1.6325

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

Previous report

Support1.59151.58801.58101.57651.5700
Resistance1.60401.61001.61401.62101.6325
RecommendationBased on the charts and explanations above we recommend selling the pair around 1.6040 targeting 1.5880 and stop loss above 1.6140 might be appropriate