Weekly Report (May 23-27, 2011)

As seen above, the pair reversed to the downside after reaching the retest areas of the main breached support for the ascending channel. Trading reversed lower also after reaching the minor descending channel's resistance alongside the pressure from SMA 50 and Stochastic. Those facts combined make us expect ageneraldownside move this week targeting 1.6045and require steady daily closing below 1.6295.

The trading range for this week is among the major support at 1.5880 and the major resistance at 1.6455.

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

Previous Report

RecommendationBased on the charts and explanations above we recommend selling the pair around 1.6295 targeting 1.6045 and stop loss above 1.6415 might be appropriate this week