Weekly Report 16 - 20 / August / 2010

The pair's trading is hung between 23.6% and 38.2% Fibonacci correction, where this fluctuation is causing the pair to lose negative momentum appearing through the four hour chart; therefore, chances of activating the bullish technical scenario shown in our last reports are available. From here, we can expect a bullish trend this week that requires a clear breach of 86.20 to head towards 87.35 then 88.70. We point out that these expectations require stability above 85.25.

The trading range for today is among the key support at 84.00 and the key resistance at 88.70.

The short term trend is to the downside as far as 91.55 remains intact with targets at 82.60.

Previous Report

Support85.7585.2584.7084.0083.50
Resistance86.2086.5587.0087.3587.95
RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 86.20 targeting 87.35 and stop loss below 85.30, might be appropriate.