Weekly Report June 28 - July 2 / 2010

The pair is trading at pivotal support 1.0330 shown in our previous reports that meet with SMA 100, thus adding more strength to it. The stability of the retest level for the previously breached ascending channel that has currently turned into resistance at 1.470, alongside 61.8% Fibonacci correction, are factors that make us expect more bearish direction this week that may be forced to slightly ascend; therefore completing the suggested bearish technical pattern shown above. The expected targets start at 1.0220 then 1.0140, but keep in mind that this scenario requires trading to remain below 1.0470 - 1.0490 to prevail.

The trading range for today is among the key support at 1.0100 and the key resistance at 1.0550.

The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.

Previous Report

Support1.03301.02601.02151.01751.0140Resistance1.04151.04701.05051.05501.0585RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0330 targeting 1.0140 and stop loss above 1.0415, might be appropriate.