Weekly Report 25/07 -29/ 07/ 2011

The pair is fluctuating within a tight range after achieving consecutive daily closings below 76.4% retracement of the rally from 76.40 to 85.50 and 23.6% Fibonacci of the bearish wave from 85.90 to the aforesaid trough as seen on the provided daily graph. This fluctuation is a normal reflection for the clear oversold signal appearing on RSI 14 and it may send the pair mildly upwards to retest the lower line of Ribbons lines -EMA 10 to 80-beforeresuming the bearishnesstowards 77.10- the technical objective of the descending triangle. The negativity of Vortex indicator -trend indicator- is another technical catalyst that argues us to suggest bearish scenario for this week.

The trading range for this week is among key support at 76.40 and key resistance now at 81.15.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 76.40 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 78.95 targeting 77.10 and stop loss above 80.25 might be appropriate.