Weekly Report (June 13-17, 2011)

The pair has been trading with some positivity in the past few days, which was mainly affected by Stochastic that started to lose the upside momentum and entering overbought areas; also, the MA 50 is a strong resistance against the pair. Therefore, we see the chances for the pair to move to the downside this week targeting mainly the return to the downside wave through 79.30, where the expected bearishness requires stability below the resistance areas of 80.75-81.40.

The trading range for this week is among the major support at 78.00 and the major resistance at 82.50.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair with four-hour closing below 79.30 targeting 77.70 and stop loss above 80.75 might be appropriate this week