Weekly Report 29/08 -02/ 09/ 2011

The areas shaded in yellow shows how the pair slumped aggressively last week, respecting our previous week's anticipations flawlessly. However, Friday's upside recovery from 1.6205 zones has created a bullish candlestick formation after being supported by SAM 50. This recovery has fixed the negativity of Stochastic, but couldn't change the negative sign which is still appearing on MACD traditional indicator as seen on the provided daily graph. Therefore, we may witness a mild upside rally towards 1.6550 once 1.6420 is breached; whilst a sustained break below Friday's low at 1.6205 will bring a downside pressure, targeting 1.6100, followed by July's low at 1.5780. The technical situation is very sensitive forcing us to stay aside until a clearer sign appears to pinpoint the upcoming big move.

The trading range for this week is among key support at 1.6000 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

Support1.63101.62501.61901.60751.6025
Resistance1.64201.65001.65501.66301.6680
RecommendationBased on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself over coming sessions.