Weekly Report (May 23-27, 2011)

The pair continues to trade within the minor descending channel shown above, while Stochastic provided positive signals accompanied by reaching the channel's support. This might force the pair to the minor resistance at 0.8850 which might be reached to towards the main channel's resistance around 0.8900 which could carry the pair into the upside correction again that previously stopped at 50% Fibonacci. We need more confirmations whether the pair will continue to trade within the main descending channel or move to the upside to resume the bullish correction. Therefore, we recommend observing the pair for now and follow up on our daily reports for more details about the pair's movement.

The trading range for this week is among the major support at 0.8485 and the major resistance at 0.9040.

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

Previous Report

RecommendationBased on the charts and explanations above we recommend observing trading today awaiting more confirmations