Weekly Report May 31 to June 1 / 2010

Despite of trading continuing to trade within the upside short term channel, bearish technical signs are close to being fully completed and are expected to dominate the pair's trading this week. The suggested neckline is at 1.1480, alongside negative signs appearingon Stochastic that make us expect a breach of the mentioned neckline, which will pave the way to achieve the bearish trend for this week; targets start at 1.1345 then 1.1185. These expectations require trading to remain below 1.1640.

The trading range for today is among the key support at 1.1185 and the key resistance at 1.1695.

The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2000.

Previous ReportSupport1.14801.14451.14001.13451.1300Resistance1.15601.16101.16401.17101.1790RecommendationBased on the charts and explanations above our opinion is selling the pair with the beach of 1.1480 targeting 1.1345 and stop loss above 1.1610, might be appropriate.