Weekly Report 20/02 -24/02/ 2012

The weekend gap pushed the pair outside the recent range bound among 0.9930-1.0070 area. It's not unusual and actually probable to see price retraces to fill the gap before resuming the expected intraday downside move. The bearishness is supported by settling and ending last week below the 200-days SMA and below the aforementioned range. Over weekly basis, we still have one downside barrier at 0.9890; a breach below this support shall indicate further bearishness for the rest of the week.

The trading range for week is expected among the key support at 0.9800 and the key resistance at 1.0075.

The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.

Previous Report

RecommendationBased on the charts and explanations above, we recommend selling the pair around 0.9950 targeting 0.9890 and 0.9850, stop loss above 1.0000.