Weekly Report (June 27 - July 01, 2011)

Trading started today with the pair's stability below areas of 38.2% Fibonacci correction for the upside wave shown above. We can see the downside bias on Stochastic despite trading within overbought areas. Also, the descending channel engulfing the MA 50 at 1.4320 keeps the downside pressures evident. Therefore, we believe the pair will be pressured to the downside this week which essentially requires stability below the MA mentioned to prevail.

The trading range for this week is among the major support at 1.3775 and the major resistance at 1.4455.

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 1.4205 targeting 1.3970 and stop loss with four-hour closing above 1.4320 might be appropriate