Weekly Report (July 11-15, 2011)

The pair reversed sharply to the downside from the downside channel's main resistance as shown on the chart. But, this downside trend couldn't force the pair to exit the sideways range between 0.8305 and 0.8535 as shown above, where stabilizing among these levels does not give any significant sign, and we need a daily closing out of this range. Stochastic is still trading bearishly, but it entered overbought areas. Generally, consolidating below the downside channel's main resistance at 0.8465 and below the sideways resistance shown mentioned will keep the pair's chances valid to the downside attempting to breach 0.8305.

The trading range for this week is among the major support at 0.8170 and the major resistance at 0.8600.

The short-term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.

Previous report

Support0.83350.83050.82500.81700.8110
Resistance0.84200.84650.85000.85350.8600
RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.8420 targeting 0.8170 and stop loss above 0.8420; and if the stop loss was triggered we recommend buying the pair around 0.8420 targeting 0.8535 and stop loss with four-hours closing below 0.8305 may be appropriate