Weekly Report (May 09-13, 2011)

The pair declined sharply last week moving from the main ascending channel's resistance to the support as shown above. This declined stopped at the support which resides with 76.4% correction alongside momentum indicators entering oversold areas. Therefore, we expect the pair to move in general to the upside this week targeting areas from 1.4640 then 1.4750 and require daily closing stability above 1.4320.

The trading range for this week is among the major support at 1.4150 and the major resistance at 1.4750.

The short term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.

RecommendationBased on the charts and explanations above we recommend buying the pair around 1.4320 and take profit in two stages at 1.4545 and stop loss below 1.4220 might be appropriate this week