Weekly Report 30/01 -03/02/ 2012

The pair has touched a very strong barrier around 1.3230 which forced it to pullback during the Asian session as seen on the provided daily chart. We can see on the same main graph an obvious overbought sign appearing on Stochastic; whilst the secondary four-hour time scale offers a huge negative divergence on its RSI 14. Hence, we suggest potential downside actions during this week covered by SMA 100. Ultimately, a break below 1.3080-Vlaue of SMA 50- will confirm and accelerate declines.

The trading range for this week is among key support at 1.2850 and key resistance at 1.3460.

The general trend over short term basis is to the downside, targeting 1.1865 as far as areas of 1.3550 areas remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.3200 targeting 1.2930 and stop loss above 1.3375 might be appropriate.