Weekly Report 16/04 -20/04/ 2012

In line with our previous report, the pair has plummeted on Friday after finishing the re-test process of the previous broken support line from below as seen on the provided daily graph. Moreover, the closing was achieved below SMA 50 and SMA 100 suggesting that additional downside actions might be witnessed during this week. The Secondary image shows the bearish candlestick structure and the closing below Ribbons Lines-EMA 10 to 80- which support the bearish overview. Ultimately, clearing the psychological level of 1.3000 will foreshadow aggressive drops.

The trading range for this week is among key support at 1.2680 and key resistance at 1.3320.

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 1.3055 targeting 1.2825 and stop loss above 1.3230 might be appropriate.