Weekly Report 25/07 -29/ 07/ 2011

During the past week, we expected the pair to settle for 0.8255, but we haven't witnessed any consolidation above this level, which supported a downside wave to control the pair's movement with the start of this week. Stability below this level should extend the downside trend, and consolidation below 0.8195 should support the bearishness. The pair is approaching the critical level of 0.8015, which is very strong, but until then we should enjoy the downside trend after the descending channel has controlled the pair's movement.

The trading range for today 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 0.8015 and stop loss above 0.8255 or might be appropriate.