Weekly Report 12 - 16 / July / 2010

The pair continues it's ascend nearing the retest level for the previously breached bullish channel that has currently turned into resistance and ascended towards 89.55. This upside movement is accompanied by stochastic entering overbought areas, thereby wethink that,the expected bearish short term direction to be resumed for overall trading this week; technical targets start at 87.00 then 85.80. Keep in mind that the daily closing must stabilize below 90.60 to maintain chances of achieving these expectations.

The trading range for today is among the key support at 85.80 and the key resistance at 91.45.

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

Previous ReportSupport88.3587.6587.0086.4085.80Resistance89.5590.2090.6091.0091.85RecommendationBased on the charts and explanations above our opinion is selling the pair around 89.55 targeting 88.20 and stop loss above 90.60, might be appropriate.