Weekly Report (May 16-20, 2011)

The pair breached the ascending channel's support followed by breaching 38.2% correction shown above, signaling further downside movement for this week targeting 1.6045 then 1.5880 if the former was breached. Momentum indicators are positive that might push the pair to retest areas between 1.6210 and 1.6255 before reaching the targets. Breaching the latter and stability above it carries the pair to the upside once again.

The trading range for this week is among the major support at 1.5880 and the major resistance at 1.6415.

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

Previous Report

Support1.61601.61101.60451.60001.5955
Resistance1.62101.62551.63001.63551.6415
RecommendationBased on the charts and explanations above we recommend selling the pair around 1.6255 targeting 1.6045 and stop loss above 1.6355 might be appropriate this week