Weekly Report (May 23-27, 2011)

The pair attempted to negate the upside pattern's effect that was mentioned in our previous reports, yet the downside move ended exactly at the retest for the main descending channel's resistance as shown above. We expect the main to continue the upside correction this week with the breach and stability above 0.9770; once this move is confirmed targets are around 0.9970, while breaching 0.9635 will carry the pair south once more.

The trading range for this week is among the major support at 0.9565 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 four-hour closing above 0.9770 targeting 0.9970 and stop loss below 0.9635 might be appropriate this week