Weekly Report (June 06-10, 2011)

The pair stabilized above the MA 50 in addition to breaching 23.6% Fibonacci correction that turned into resistance after its breach. The pair is approaching gradually the resistance for the minor descending channel shown within the main channel, and we favor the likelihood for the pair to breach this resistance to resume the upside move expected for this week, targeting the recently recorded top around 1.6475. Stability above 1.6370 is required for our expectations to prevail.

The trading range for this week is among the major support at 1.6210 and the major resistance at 1.6900.

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 we recommend buying the pair with four-hour closing above 1.6495 targeting 1.6745 and stop loss below 1.6370 might be appropriate this week