Weekly Report (May 23-27, 2011)

The pair is attempting to stabilize above SMA 50, which is the awaited confirmation to activate the upside correction mentioned last week. In general,we expect the pair to move to the upside this weekdue to stability above the main descending channel's resistance targeting 83.50 then 84.50 and require stability above 80.25. We have signs of a bullish pattern under construction and will be detailed when completed.

The trading range for this week is among the major support at 80.25 and the major resistance at 84.50.

The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.

Previous Report

Support81.7581.3080.7580.2579.80
Resistance82.5083.0083.5083.9084.50
RecommendationBased on the charts and explanations above our opinion is buying the pair around 81.75 targeting 83.50 and stop loss below 80.75 might be appropriate this week