Weekly Report 19 - 23 / July / 2010

The pair has exited the bearish channel shown in our previous reports, although we see that this breach is temporary to attempt a minor bullish correction, where the 50 MA was able to halt the move as seen on the chart above. Stochastic provided a negative crossover that makes us expect the pair to return within the bearish track once again; therefore, we can expect a bearish direction this week targeting first the confirmation of the breach for 1.0350 and then head towards 1.0250. A daily closing below 1.0550 is vital for our expectations to prevail.

The trading range for today is among the key support at 1.0220 and the key resistance at 1.0675.

The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.

Previous ReportSupport1.04001.03501.03151.02501.0220Resistance1.04951.05501.06001.06751.0700RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0400 targeting 1.0250 and stop loss above 1.0495, might be appropriate.