Weekly Report (June 20-24, 2011)

The upside move stopped at the retest for the breached support at 1.4325 which the MA 50 protected. The Stochastic is clearly negative and accordingly we expect the downside move to continue this week within the main descending correction channel shown above. The main target resides at 1.3910 and requires stability below 1.4450.

The trading range for this week is among the major support at 1.3910 and the major resistance at 1.4450.

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 our opinion is selling the pair around 1.4325 targeting 1.4090 and stop loss above 1.4450 might be appropriate this week