Weekly Report 19/09 -23/ 09/ 2011

After breaching the upside trend's main support and forming the bearish technical structure, the pair continues to trade with a negative bias. Despite the upside correction seen today, the pair is stable below the exponential moving averages and the previously breached main support, which turned into resistance. The pair could trigger an upside correction to retest the levels around 0.9910, but consolidation below 1.0010 should supportthe general downside movement, while consolidation below 0.9950 should add more confirmations to our expectations to remain valid.

The trading range for this week is among the major support at 0.9635 and the major resistance at 1.0125

The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.

Previous Report

RecommendationBased on the charts and explanations above, we recommend selling the pair around 0.9900, and take profit in stages at (0.9800, 0.9705) and stop loss above 0.9970 might be appropriate.