Weekly Report(22-26 August 2011)

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The pair inclined to reach near the resistance of the main descending channel to touch the 50 % Fibonacci correction level. The incline is facing several technical barriers, mainly the descending resistance of the channel and the 50 EMA in addition to the aforementioned Fibo Level, and negativity on stochastic over daily basis. Accordingly , we expect a downside move for the week targeting mainly 123.30 and 120.80. While stability below 127.65 is required for our expectation to remain possible.

The trading range for the week is among the major support at 120.80 and the major resistance at 128.50.

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

Previous Report

Support126.15125.05124.65124.00123.30
Resistance127.00127.65128.05128.50129.00
RecommendationBased on the charts and explanations above we recommend selling the pair around 127.00 targeting 123.30 and stop loss above 128.50 may be appropriate.