Weekly Report 01/08 -05/ 08/ 2011

The pair succeeded in reaching our previous proposed technical target of the efficient descending triangle pattern of the daily basis-we recommend reviewing the previous report for more details about the classical overview-. Moving to the four hour chart, we can see an IM-impulsive- wave presenting itself to us from 81.45 to Friday's recorded low at 76.85. The two positive divergences on RSI 14 could be a sign that reactionary waves (A-B-C)are under preparation to complete the IM structure. A break of 78.05 is needed to make sure that the pair has maintained SMA 20 levels. On the downside, breaching through 76.40 will bring panic selling pressures and will damage the bullish outlook of thisweek.

The trading range for this week is among key support at 75.25 and key resistance now at 80.05.

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

Support77.1076.7576.4076.0075.25
Resistance77.9078.3578.9079.3079.55
RecommendationBased on the charts and explanations above our opinion is, buying the pair above 78.05 targeting 80.05 and stop loss below 76.40 might be appropriate.