Weekly Report (May 02-05, 2011)

The pair is trading within the minor ascending channel that carried the bullish wave within the main ascending channel as shown above. The pair is finding difficulty in breaching 1.6740 due to the negativity on momentum indicators that might force the pair into a slight downside correction before resuming the expected bullishness for this week. Targets reside at 1.7000 and require stability above 1.7000.

The trading range for this week is among the major support at 1.6525 and the major resistance at 1.7000.

The short term trend is to the upside with steady daily closing above 1.5315 with targets at 1.7000.

RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.6610 targeting 1.6850 and stop loss below 1.6525 might be appropriate this week