Weekly Report (June 13-17, 2011)

The pair broke through the MA 50 and rushed to the upside affected by the minor bullish pattern that will carry the pair towards 38.2% Fibonacci correction at 0.8540. Stochastic is moving within overbought areas and therefore we favor the likelihood for the pair to resume the general downside move expected for this week targeting mainly 0.8200 areas. Breaching the mentioned correction areas will extend the upside move likely towards 0.8670 areas.

The trading range for this week is among the major support at 0.8180 and the major resistance at 0.8670.

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

Previous Report

RecommendationBased on 8670 charts and explanations above our opinion is selling the pair around 0.8540 targeting 0.8325 and stop loss above 0.8550 might be appropriate this week