Weekly Report 12/03 -16/03/ 2012

Friday's bearish engulfing candlestick pattern has confirmed our short term outlook and eyes now is on the psychological levels of 1.3000. This collapse seen obviously on the daily graph may weaken 1.3000 zones supported by the negativity appearing on Stochastic and if the pair succeeds in taking 1.3000, the path will be cleared towards the monthly support level of 1.2850. We recommend reviewing the previous report for more details about the previous anticipated bearish scenario.

The trading range for this week is among key support at 1.2740 and key resistance at 1.3415.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair below 1.3130 targeting 1.2850 and stop loss above 1.3320 might be appropriate.