Weekly Report 10 - 14 / May / 2010

The pair opened trading with a bearish price gap that placed it below resistance for the previouslybroken key descending channel, where there is additional negative pressure coming from momentum indicators and trading below MA 100. We expect more bearish correction for this week, where its targets start at 1.0240 then 1.0120. Keep in mind the importance of the daily close remaining above 1.0365 will make the expected bearish correction scenario to fail and lead it to continue the new bullish direction that the price has started since recording the bottom level 0.9927.

The trading range for today is among the key support at 1.0100 and the key resistance at 1.0600.

The short term trend is to the downside as far as 1.0780 remains intact with targets at 0.9705.

Previous ReportSupport1.02401.02101.01751.01201.0045Resistance1.03651.04451.05201.06001.0660RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.0365 targeting 1.0120 and stop loss above 1.0520, might be appropriate.