Weekly Report May 31 to June 1 / 2010

The pair touched the previously broken support that turned into resistance at 91.45, which is also at 50% Fibonacci correction, shown above. The stochastic is losing bullish momentum and is nearing overbought areas, which makes us expect a bearish trend this week as its main targets start at 90.00 then 89.00. Keep in mind that this scenario will remain intact if we do not witness a daily closing above 92.30.

The trading range for today is among the key support at 89.00 and the key resistance at 93.30.

The short term trend is to the downside as far as 101.65 remains intact with targets at 82.60.

Previous ReportSupport90.6090.0089.6089.0088.70Resistance91.4591.9592.3092.8093.30RecommendationBased on the charts and explanations above our opinion is selling the pair from 91.45 targeting 90.00 and stop loss above 92.30, might be appropriate.