Weekly Report 24 - 28 / May / 2010

The pair is trading naturally within the key descending channel shown in the daily chart, where it is heading towards the last bearish wave correction but at the same time is considered to be a natural movement from support from the descending channel towards its resistance. Some possible fluctuation between 23.6% and 38.2% Fibonacci correctional levelsis evident in the chart above, but in overall we expect a bullish trend for this week; key targets is around 1.5000 and could extend towards 1.5200. Keep in mind that the breach of 1.4295 will make the negative pressure on the pair to return in an attempt to resume the main bearish trend without the need of a bullish correction.

The trading range for today is among the key support at 1.4230 and the key resistance at 1.5000.

The short term trend is to the downside as far as 1.5590 remains intact with targets at 1.3800.

Previous ReportSupport1.43951.43651.42951.42501.4195Resistance1.45151.46001.46401.47001.4740RecommendationBased on the charts and explanations above our opinion is buying the pair above 1.4515 targeting 1.4700 and stop loss below 1.4365, might be appropriate.