Weekly Report 19 - 23 / July / 2010

The pair continues its negative pressure especially after successfully retesting the support for the previously breached bullish channel shown above. Momentum indicators are providing bullish signs that might push the pair into an upside correction before resumingthe expected bearishness over the week. The expected correction level to be reached is at 87.30, where the awaited technical targets are initially at 84.75. Keep in mind that the breach of 88.00 could push the pair to reach the previously breached support for the ascending channel that has presently turned into resistance at 89.50.

The trading range for today is among the key support at 84.75 and the key resistance at 89.50.

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

Previous ReportSupport86.4085.9585.3585.0084.75Resistance87.3088.0088.6589.1589.50RecommendationBased on the charts and explanations above our opinion is selling the pair around 87.30 targeting 85.95 and stop loss above 88.00, might be appropriate.