Weekly 19 - 23 / April / 2010

The pair is currently touching 1.0655 - covering the price gap that had been achieved in the beginning of that week - after a temporary breach of resistance fir the descending channel shown in the image above. We consider this ascend is a temporary bullish correction for the last bearish wave; therefore we await a bearish reversal, where the pair can resume through it the expected bearish trend for this week. The pair first mission is the clear breach of 1.0590 then heading towards 1.0400. Keep in mind that any stability above 1.0715 means that there is a possible reversal in the short term direction.

The trading range for today is among the key support at 1.0400 and the key resistance at 1.0840.

The short term trend is to the downside as far as 1.1095 remains intact with targets at 0.9910.

Previous ReportSupport1.05901.05501.04851.04251.0350Resistance1.06551.06851.07151.07451.0795RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0590 targeting 1.0400 and stop loss above 1.0715, might be appropriate.