Weekly Report March 28 - April 01 / 2011

The pair continued moving downwards to presently trade around 38.2% Fibonacci correction and ascend from 1.5340 to 1.6400. Meanwhile, it found difficulty with stability above the previously broken upside channel, which could signal some expected bearish correction through the upcoming days of this week. Note: the positivity of momentum indicators that have stopped this correction around 50% around 1.5870, point out that critical levels that hold the keys to insuring the upcoming direction are represented by support 1.5995 and resistance 1.6090.

The trading range for this week is among the key support at 1.5770 and the key resistance at 1.6450.

The short term trend is to the upside as far as 1.5315 remains intact with targets at 1.7000.

Previous Report

Support1.59951.59551.58701.58101.5770
Resistance1.60601.61051.61501.62001.6245
RecommendationBased on the charts and explanations above our opinion is selling the pair with an hourly closing below 1.5995 targeting 1.5870 and stop loss above 1.6090, might be appropriate.