Weekly Report 19/03 -23/03/ 2012

Adopting a favorable reaction to the positive divergence caught on Friday, the pair has inclined closing below three important levels as follows:

1-SMA 100.2- The key resistance level of 1.3230.

3-The Fibonacci level of 38.2% of the entire downside move from 1.4245 to 1.2625.

We classify this incline as a correctional wave after touching the sensitive areas around 1.3005 as seen on the provided daily chart. To conclude, potential downside move may start during this week targeting 1.3005; noting that a break above 1.3320 will damage the suggested classical probability.

The trading range for this week is among key support at 1.2860 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 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair below 1.3200 targeting 1.3005 and stop loss above 1.3325 might be appropriate.