Weekly Report (18-22/July/2011)


Over the daily charts, we see the pair moving among a short term descending channel, and the latest test of the resistance level of the channel hints that the downside movement may continue toward the support of the channel near 123.00. The 50 EMA and the breach of the pivotal support levels at 130.55 and 128.15 are negative factors that support our expectations for a downside move during the week, while breaching 128.15 may delay achieving the awaited targets.

Trading range for the week is among the major support at 121.00 and the major resistance at 130.55

The short term trend is to the downside targeting 112.00, as long as 150.00 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 128.15 targeting 124.85 and stop loss above 129.40 may be appropriate.