Weekly Report (June 20-24, 2011)

The pair stabilized below the support for the main ascending channel support shown above, while Stochastic provided overbought signs and this signals that the pair will resume the downside correction this week. The main targets reside at 1.5880 and the breach of 1.6220 will be the first signal for returning to the general upside move.

The trading range for this week is among the major support at 1.5770 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.

RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.6210 targeting 1.6000 and stop loss above 1.6320 might be appropriate this week