Weekly Report 27 Feb-02 March
The pair managed to push above the latest swing high at 1.3320 to accelerate the incline toward 1.3500 areas. Although the recent rally looks impressive; it remains clear that the pair is still within a bearish trend, trading among the descending channel shown on the image, and below several key technical resistance levels, such as the cluster of the horizontal resistances among 1.3500-1.3600 area, followed by the 200-days SMA. In general, we expect the pair to pullback slightly as price is overbought as seen on Stochastic, before attempting again to the upside this week. However, we see upside potential likely limited to levels below 1.3625, if extended it should top below 1.3800 otherwise long term bearish outlook shall be reconsidered.
The trading range for the week is expected among the key support at 1.3625 and the key resistance at 1.3050.
The general trend over short term basis is to thedownsidetargeting1.1865as far as areas of 1.3550remain intact.
|Recommendation||Based on the charts and explanations above, we recommend selling the pair around 1.3540 targeting 1.3320. Stop loss four-hour closing above 1.3620.|