Weekly Report 17 - 21 / May / 2010

The pair managed to build a base above resistance for the previous descending channel - which hasturned into support at 1.0330 - thus pointing to more bullish direction for trading this week. Meanwhile, bullish signs support these expectations appearingon the Stochastic, in addition to 76.4% Fibonacci correction maintaining its stance in front of the pair's attempts to descend. The awaited technical targets are at 1.0740 and require closing above 1.0330 to prevail.

The trading range for today is among the key support at 1.0235 and the key resistance at 1.0740.

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

Previous ReportSupport1.03301.02401.02151.01851.0120Resistance1.04301.04701.05501.06001.0660RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.0330 targeting 1.0550 and stop loss below 1.0240, might be appropriate.