Weekly Report 09/04 - 13/04/ 2012

The pair is still hovering around 50% Fibonacci retracement of the entire upside correctional rally from 1.2625 zones to the significant high around 1.3485 as seen on the provided daily chart. Classically, we will continue relying on the breakout that occurred last Wednesday below the uptrend line in addition to the negativity of candlesticks formation to suggestmore downside actions during this week. A break below 1.3025-1.3005 will accelerate and confirm the move while coming above 1.3200 zones will slow down the southern journey.

The trading range for this week is among key support at 1.2740 and key resistance at 1.3375.

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 1.3100 targeting 1.2825 and stop loss above 1.3260 might be appropriate.