Weekly Report (July 4-8, 2011)

The pair continues to fluctuate around the MA 50 and the 23.6% Fibonacci correction, noting that last week's closing was below the mentioned MA. Therefore, we see the likelihood for a bearish move this week supported by the downside move on Stochastic. The bearishness requires the breach of the support for the minor ascending channel at 80.25, and breaching the neckline for the bearish pattern at 79.65 and also steady daily closing below the MA 50.

The trading range for this week is among the major support at 78.00 and the major resistance at 82.50.

The short-term trend is to the downside as far as 89.35 remains intact with targets at 77.70.

RecommendationBased on the charts and explanations above our opinion is selling the pair around 80.75 targeting 78.50 and stop loss above 81.75 might be appropriate this week