Weekly Report 18/07 -22/ 07/ 2011

A descending channel is controlling the pair's movement, and despite the fact that Stochastic is oversold, the pair is not responding and continues to trade negatively since breaching 0.8305. There is a support around 0.8010, which represents the target after breaching 0.8305. In general, we expect a downside trend for this week and requires stability below 0.8195 to prevail.

The trading range for this week is among the major support at 0.7920 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

RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.8195 targeting 0.8010 and stop loss above 0.8255 might be appropriate this week