Weekly Report May 31 to June 1 / 2010

The support levels for the main descending channel has shown a strong stance in front of the third attempt to breach it last week, where the pair moved to the upside due to positive signs appearing through momentum indicators. The minor channel will organize the current bullish intraday wave - shown above -. Therefore, we can expect a bullish trend this week; targeting initially 1.2480 then 1.2670, but keep in mind that the breach of 1.2135 will push the pair to resume the main bearish wave without the need to bullishly correct.

The trading range for today is among the key support at 1.2135 and the key resistance at 1.2670.

The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.

Previous ReportSupport1.22601.22051.21351.20601.2000Resistance1.23651.24201.24801.25501.2615RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.2260 targeting 1.2480 and stop loss below 1.2135, might be appropriate.