Weekly Report (June 20-24, 2011)

The MA 50 remains a resistance ahead of the pair and adding negative pressure, while we have signs of a bearish pattern with the neckline at 79.65. This pattern alongside stability below 23.6% Fibonacci correction signal a downside move this week in general; the downside move requires the clear breach of 76.95 followed by 79.00 and also steady daily closing below 80.75-81.00.

The trading range for this week is among the major support at 78.40 and the major resistance at 82.00.

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

RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 79.65 targeting 77.70 and stop loss above 80.75 might be appropriate this week