Weekly Report (June 13-17, 2011)

Breaching the areas of 1.6300 activated the bearish technical pattern and pushed the pair to the downside approaching the main ascending channel's support as shown above. This downside move and approaching the support at 1.6180 is still ideal for trading within the ascending channel. Therefore, we expect an upside reversal to resume trading within the channel targeting first 1.6455. We should take into consideration that the breach of 1.6180 and stability below it would extend the downside correction in the coming period.

The trading range for this week is among the major support at 1.6000 and the major resistance at 1.6545.

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

Previous Report

Support1.61801.60951.60451.60001.5955
Resistance1.63001.63851.64551.65151.6550
RecommendationBased on the charts and explanations above we recommend buying the pair around 1.6180 targeting 1.6455 and stop loss below 1.6045 might be appropriate this week