Weekly Report 08/08 -12/ 08/ 2011

The technical situation becomes more sensitive after achieving Friday's US session rally, which was followed by touching 1.6470 zones once more. The first chart of the four hour time scale, we can see the recently established trading range areas between 1.6225-1.6250 zones and 1.6470 areas, where MACD and Vortex are giving off unclear signs. Despite trading closer to the resistance level of this range, but we will notice a hard technical obstacle around 1.6550 zones. Thus; we don't believe that any upside attempts will be marked by acceleration as the next difficult resistance will be near to 1.6470. The second graph of the daily basis reflects the above mentioned sensitive case more and more as the pair is trading below the broken uptrend line from 1.4225- low of 2010- to the significant peak of 1.6745, but it is above combination of SMA 50-SMA 100. In result, we are completely forced to stay aside until an actionable setup presents itself over coming sessions.

The trading range for this week is among key support at 1.5935 and key resistance at 1.6745.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.

Previous Report

Support1.63101.62501.60701.60001.5935
Resistance1.64701.65501.66301.66801.6745
RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.