Weekly Report (May 16-20, 2011)

The pair attempted to breach the neckline mentioned in our previous reports at 0.9710 yet the daily closing remains below this level, and we still require stability above this level to activate the pattern's effect shown above. We have two positive factors which are the stability with daily closing above the descending channel's resistance, and the stability above the SMA 50 and accordingly we expect a general upside move this week targeting 0.9845 and might extend towards 0.9970. Nevertheless, breaching areas of 0.9600 with daily closing below it will revive the bearish move and negate the expected upside move.

The trading range for this week is among the major support at 0.9445 and the major resistance at 0.9970.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair with hourly closing above 0.9710 targeting 0.9845 and stop loss below 0.9600 might be appropriate this week