Weekly 19 - 23 / April / 2010

The pair continued its bearish pressure due to the ascending channel that organizes trading for the short term wave that made it possible for the pair to breach the bearish medium term direction seen on the image above. The clear negative effect of momentum indicators is evident, where we expect to touch support for support for the short term channel at 1.3390, followed by a rebound that will carry the pair towards achieving the bullish direction for this week; targets start at 1.3665. The daily closing below 1.3335 could mean that the scenario of a continuous bullish short term wave has failed.

The trading range for today is among the key support at 1.3280 and the key resistance at 1.3850.

The short term trend is to the downside as far as 1.4410 remains intact with targets at 1.2450.

Previous ReportSupport1.33901.33351.32751.32401.3195Resistance1.34951.35851.36651.37001.3730RecommendationBased on the charts and explanations above our opinion is buying the pair at 1.3390 targeting 1.3665 and stop loss below 1.3275, might be appropriate.