Weekly Report 26/03 -30/03/ 2012

The pair continued consolidating around the key resistance level of 1.3250 after the positive closing above 38.2% Fibonacci level of the entire downside move from 1.4245 to 1.2625. The stability below the key resistance level of 1.3320 and the reversal candlestick pattern -shooting star- over four-hour basis argue us to suggest potential downside move during this week. A break below 1.3200 is required to confirm our constructive bearish outlook while a break above 1.3375 will negate and give us a reason for concern.

The trading range for this week is among key support at 1.2930 and key resistance at 1.3550.

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 1.3200 targeting 1.2975 and stop loss above 1.3380 might be appropriate.