Weekly Report 5 - 9 / July / 2010

Support level of87.00 was able to stop the last bearish wave for the pair, where this level that has strongly been activated after breaching support for the bullish channel, shown above, in addition to the horizontal support around 88.40. Currently, trading is between both ends of the inverted triangle pattern that targets resuming the bearish trend, not before we witness some fluctuation due to the positive momentum appearingon the intraday timeframe. In overall, we can expect a bearish intraday trend that mainly targets 76.40 then 84.75. Keep in mind that the breach of 88.40 and stabilizing above it could postpone achieving these targets and lead to retesting support for the previously breached bullish channel that has currently turned into resistance at 89.40.

The trading range for today is among the key support at 84.75 and the key resistance at 89.40.

The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.

Previous ReportSupport87.3086.9086.4085.8085.35Resistance88.4088.9589.4089.7090.20RecommendationBased on the charts and explanations above our opinion is selling the pair around 88.40 targeting 86.40 and stop loss above 89.40, might be appropriate.