Weekly Report 15/08 -19/ 08/ 2011

The pair started this week witha gap,consolidating above the middle line of Bollinger Band indicator around 0.7765, where this level contains the descending channel, while the pair could retest the channel's main resistance at 0.8150, however, the pair should stabilize above SMA 50 at 0.8035 as shown in blue on the chart. We expect the upside movement to continue, butcomning backbelow 0.7600 could delay the bullishness. We recommend checking our Midday Report today for more information about the harmonic pattern, which changed the short-term trend.

The trading range for today is among the major support at 0.7250 and the major resistance at 0.8240.

The short-term trend is to the upside with steady weekly closing above 0.6980 targeting 0.8815.

Previous Report

RecommendationBased on the chart and explanations above, we recommend buying the pair around 0.7800, targeting 08240 and stop loss with daily closing below 0.7600 might be appropriate.