Weekly Report (June 20-24, 2011)

The 23.6% Fibonacci -turned into support after its breach- halted the downside move for the pair to rebound to the upside from the MA 50 support. The pair is still forming the positive suggested pattern in our previous reports, and accordingly, we expect more upside correction targeting the main resistance for the downside move at 0.8655. We need to observe the pair at this level as the breach will push the pair towards 76.4% around 0.8755 and the breach of 0.8455 will negate the scenario and drive the pair to the downside settling for the seen upside correction till now.

The trading range for this week is among the major support at 0.8300 and the major resistance at 0.8755.

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 we recommend buying the pair with the breach of 0.8540 targeting 0.8755 and stop loss below 0.8455 might be appropriate this week