Weekly Report 01/08 -05/ 08/ 2011

The pair breached 0.7920 but returned to trade above this level at the start of this week, which indicates that the current situation is very critical. This level represents a critical barrier on the short-term and median-term time frames. During Friday, the crab pattern failed (explained in our previous report), while consolidation above 0.7920 alongside with rebounding from the downside trend's main support will not completely negate the suggested upside trend on the median-term time frame. We will stay neutral in our weekly report, but we recommend checking our next reports for confirmations regarding the pair's movement between 0.7920 and the downside trend's main support at 0.7850.

The trading range for this week is among the major support at 0.7700 and the major resistance at 0.8255.

The short-term trend is to the upside with steady weekly closing above 0.7920 targeting 0.8930.

Previous Report

RecommendationBased on the charts and explanations above we recommend observing the pair for more confirmations