Weekly Report (June 27 - July 01, 2011)

Breaching the ascending channel is strongly affecting the pair, as trading is affected by the minor descending channel that continues to pressure the pair. Trading below the 50% Fibonacci correction shown above adds more negativity on the pair which might extend the downside move this week. Stochastic is oversold which might increase the volatility during the expected bearish move.

The trading range for this week is among the major support at 1.5580 and the major resistance at 1.6210.

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 1.5965 targeting 1.5765 and stop loss with daily closing above 1.6060 might be appropriate