Weekly Report (June 13-17, 2011)

The pair continues to trade structurally within the main ascending correctional channel shown above, which was mentioned in our previous reports. Stochastic is trading within overbought areas and might pressure the breach of the channel's support and carry the pair to the general downside move again; meanwhile stability above the 61.8% Fibonacci correction might support trading within the mentioned ascending channel. Therefore, the intraday direction for this week depends on the price behavior around the sensitive support at 0.9710 and resistance at 0.9845. Breaching 0.9710 will drive the pair towards 0.9565 then 0.9500 while breaching 0.9845 will drive the pair initially towards 1.0000.

The trading range for this week is among the major support at 0.9565 and the major resistance at 1.0000.

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

Previous Report

Support0.97100.96450.95650.95000.9445
Resistance0.97700.98450.99150.99701.0000
RecommendationBased on the charts and explanations above our opinion is selling the pair with four-hour closing below 0.9710 targeting 0.9565 and stop loss above 0.9800 OR buy the pair with four-hour closing above 0.9845 targeting 1.0000 and stop loss below 0.9770 might be appropriate this week