Weekly Report 24 - 28 / May / 2010

The pair was not able to breach the first top recorded in the beginning of this month at 1.0740, shown in the image above, while negative signs are appearing through momentum indicators point out that some required bearish correction is needed to rid of this momentum. We expect a bearish direction this week; targets are mainly at 1.0335 - 50% Fibonacci correction for the last bullish wave - before resuming the bullish short term wave.Note that, MA 100 today is protecting the primary bullish wave.

The trading range for today is among the key support at 1.0335 and the key resistance at 1.0925.

The short term trend is to the upside as far as 1.9925 remains intact with targets at 1.1485.

Previous ReportSupport1.05451.05001.04301.03701.0335Resistance1.06251.06701.07451.07851.0865RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0545 targeting 1.0335 and stop loss above 1.0670, might be appropriate.