EUR/USD Weekly Technical Report 20-24/5/2013

This week’s trading started to the upside, but we find it stable below key support level of the bullish move that was broken earlier as shown on graph. Trading below 1.2970 this week keeps the possibility of extending the downside move in an attempt to touch 1.2744 levels, as breaking it might trigger a new bearish wave. Linear Regression Indicators supports our expectations, but Stochastic is showing oversold signals which we will ignore unless the pair breach and stabilize above 1.2970 levels.

The trading range for this week is among the key support at 1.2560 and key resistance at 1.3030.

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