EUR/USD Weekly Technical Report 3-7/6/2013

Over daily basis, we notice stability above 23.6% correction of the descending wave starting from 1.3711 levels toward the bottom at 1.2477, this correctional level resides at 1.2970 levels. The pair has also stabilized above key support level of the bullish wave and above Linear Regression Indicators. Therefore, trading above 1.2880 will be considered positive this week, while stability above 1.2945 is more positive. Stochastic reflects negative momentum signals but we will ignore them unless the aforementioned support levels 1.2945 and 1.2880 are broken.

The trading range for this week is among the key support at 1.2725 and key resistance at 1.3225.

The general trend over short term basis is to the downside targeting 1.2560 as far as areas of 1.3270 remains intact.