Weekly Report (June 27 - July 01, 2011)

The sharp upside move carried the pair once again into the ascending channel accompanied by clear overbought signs on Stochastic. The heavy buying saturation seen might force the pair into a bearish correctional move; nevertheless, we expect the pair might test areas of 1.1000 and shall the pair breach those areas we might see an extension to the upside move.

The trading range for this week is among the major support at 0.9670 and the major resistance at 1.0210.

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 we recommend buying the pair around 0.9900 targeting 1.0125 and stop loss below 0.9825 might be appropriate