Weekly Report 16 - 20 / August / 2010

The pair continues trading within a sideway bearish range shown above, while obstacles of surpassing resistance continues and has currently descended to 1.0600. The stochastic is nearing oversold areas, where support continues minor support 1.0460 and pressuring the pair to the upside. In overall, we can expect a bullish trend this week supported by the bullish technical pattern shown in our reports like week that may be activated incase the pair succeeds in clearly breaching and stabilizing above 1.0600, where technical targets start at 1.0745 then 1.0900. Keep in mind that the breach of 1.0460 could postpone achieving bullish targets and lead to a bearish trend towards 1.0325.

The trading range for today is among the key support at 1.0325 and the key resistance at 1.0900.

The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.1730.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 1.0600 targeting 1.0745 and stop loss below 1.0500, might be appropriate.