Weekly Report 17 - 21 / May / 2010

The pair surpassed the awaited key targets and managed to achieve more negative pressure that will breach support for the main descending channel at 1.2330. This level will meet with the recorded bottom at the end of October 2008; thus, we expected the pair to witness a more bearish short term direction. Some fluctuation will be witnessed to retest the breached support level before heading towards upcoming targets that are around 1.2150 then 1.2000. It is vital that closing is below 1.2330 to achieve mentioned targets.

The trading range for today is among the key support at 1.2000 and the key resistance at 1.2500.

The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.2450.

Previous ReportSupport1.22351.21901.21601.21251.2060Resistance1.23301.23851.24401.25001.2575RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.2330 targeting 1.2150 and stop loss above 1.2500, might be appropriate.