EURUSD Weekly Analysis 26-July-2010 www.TopPips.com Disclaimer: There is a very high degree of risk involved in trading. In any market where a potential for profit exists, there exists also a risk of loss. Forex trading is a risky business. You should only trade with money that you can afford to lose. In case of loss, the amount should not affect your lifestyle and your family’s in anyway. None of the information on our website nor any information or education provided to the reader by any means assures that the reader will make money in the Forex market. Neither the au- thor nor the publisher will be responsible for the use or misuse of the information contained herein. The information contained in this ebook is for information purposes only. It is not intended as professional advice or a recommendation to act. Before engaging in any activity mentioned in this ebook, seek the advice and consultation of a competent professional. All trademarks mentioned herein are the property of their respective trademark owners. EURUSD Weekly Analysis If we look into last two days of trading activity this pair has not made a new low or new high, suggesting indecision, and furthermore it seems to be forming a sym- metrical triangle on 4 hours chart and also moving in a bullish channel, which is a Weekly Trend Direction: Bullish continuation pattern leading to further bullish behaviour. The significant level after the break of 1.3000 on this pair will be 1.3100, where the bearish daily trendline comes into place. Weekly Trend Reversal Level: 1.2725 Our recommendation is to look for long entries above our sighted trend reversal Key Support Levels: 1.2820, 1.2700, 1.2600, 1.2500 level which stays at 1.2720, targeting 1.3000, 1.3100 followed by 1.3300. If this pair breaks 1.2700 level, it might fall to 1.2500 level before making another move. Ag- gressive trade will be going short after a sustained break of 1.2700 level with targets Key Resistance Levels: 1.3000, 1.3100, 1.3300 1.2600, 1.2550 & 1.2500 Entry Strategy: Buying dips in an uptrend at support levels, while market trades Alternate suggestion:ny breach of our suggested weekly trend reversal level will above trend reversal level open up doors towards 1.2500, 1.2000, 1.1875 & 1.1639 Trade Suggestion: As we look at the charts this week, the weekly closing turned out to be a doji, which leads to indecision in market, but if we consider it has made Chart new high last week and yet to make a new low, this means that uptrend is still in place. If we look at fundamental point of view, last week’s market was waiting for EURO Bank Stress Test results, which was released late Friday US session. Out of 91 banks that were reviewed, only 7 banks failed the stress tests; five Spanish banks, one German bank and one Greek bank. Though results came out positive for EURO, we won’t read much into it. The Doji on market closing may be due to market waiting on these results. We will still stay bullish on this pair from a technical point of view and fundamental point of view, but we will be cautious as the long term trend is still Bearis Technically this pair is still trading below 1.3000 key level which is a strong resistance and a 61.8 fib level from its fall from 1.3691 to 1.1875. If we look into much more details the fall from 1.3028 to 1.2732 is holding 23.6 fib level from its rise 1.1875 to 1.3028, and it has broken weekly bearish trendline, which signifies bullishness. But the range now is getting narrow which is 1.2732 to 1.3028. Price has to break out of this range to get momentum in place. We will closely look into the price action which happens in this range. Read Latest Analysis At www.TopPips.com Join Live Trading Room At www.TopPips.com Risk Warning The risk disclaimer is meant to inform the user of the potential financial risks of en- gaging in foreign exchange trading. The transaction of such financial instruments known as forex, fx, or currency, and dealt on a valued basis known as ‘spot’ or ‘for- ward’, ‘day trading’ and ‘option’, can contain a substantial degree of risk. Before deciding to undertake such transactions with any other firm offering simi- lar services, a user should carefully evaluate whether his/her financial situation is appropriate for such transactions. Trading foreign exchange may result in a sub- stantial or complete loss of funds and therefore should only be undertaken with risk capital. The definition of risk capital is funds that are not necessary to the survival or well being of the user. We strongly recommends that a user, who is considering trading foreign exchange should obtain a clear and accurate understanding of the risks inherent to fx trading. Opinions and analysis on potential expected market move- ments contained within the FirePips.com website are not to be considered neces- sarily precise or timely, and due to the public nature of the Internet, TopPips.com cannot at any time guarantee the accuracy of such information. Trading online, no matter how convenient or efficient it may be, does not neces- sarily reduce the risks associated with foreign exchange trading, and TopPips.com does not accept any responsibility towards any customer, member or third party, acting on such information contained on the website as to the accuracy or delay of information such as quotations, news, and charts derived from quotations.