Weekly Report (May 02-05, 2011)

Momentum indicators over daily basis are within oversold areas forcing the pair to rebound to the upside it correction. This move is expected to retest the breached support areas which now turn into resistance starting from 0.9575; the move is to be expected by a downside reversal toresume the expected bearishness for this weekwithin the main descending channel supported by the SMA 50, targeting 0.9300 and require stability below 0.9650.

The trading range for this week is among the major support at 0.9270 and the major resistance at 0.9650.

The short term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.

RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.9575 targeting 0.9400 and stop loss above 0.9650 might be appropriate this week