Weekly Report (May 02-05, 2011)

The pair found good support around 0.8600 to currently rebound higher affected by the positivity on momentum indicators. We believe that his currently upside move is only a retest for the breached minor support as shown above at 0.8725 before resuming the downside move expected this week targeting 0.8485 and 0.8400 which requires stability below 0.8775.

The trading range for this week is among the major support at 0.8400 and the major resistance at 0.8900.

The short term trend is to the downside with steady daily closing below 1.0330 targeting 0.8000.

RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.8725 targeting 0.8485 and stop loss above 0.8900 might be appropriate this week