Weekly Report (June 20-24, 2011)

Trading is still caught between the support for the intraday bullish channel which is supported also by the MA 50 and the positivity on Stochastic, and the 76.4% Fibonacci correction which is a strong resistance preventing the pair from further moving to the upside. Therefore, the intraday direction for the pair depends on breaching one of those areas between 0.9770-85 support and 0.9845 resistance. Breaching the support will drive the pair towards 0.9600 and the breach of 0.9845 will initially drive the pair to retest the breached psychological areas of 1.0000.

The trading range for this week is among the major support at 0.9600 and the major resistance at 1.0055.

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 opinion is selling the pair with four-hour closing below 0.9770 targeting 0.9605 and stop loss above 0.9845 OR buying the pair with four-hour closing above 0.9845 targeting 1.0000 and stop loss below 0.9770 might be appropriate this week