Weekly Report 17/05 -21/ 05 / 2010
The pair has been able to breach the pivotal support areas of 116.40-turned into resistance- during the previous week. The negative pressure of Ribbons lines-EMA 10 to 80- continued, taking the pair towards the Fibonacci expansion level of 110.40 as seen on the provided daily chart. The recently established descending channel could take the pair further more towards the technical objective of 106.35 zones. Note that, RSI 14 is moving inside oversold zones and that might cause some kind of fluctuation. To conclude, potential bearishness could be seen during this week.
The trading range for this week is among key support at 106.35 and key resistance now at 118.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support112.00111.05110.40109.50108.45Resistance113.60115.00116.00116.40117.30RecommendationBased on the charts and explanations above our opinion is, selling the pair from 113.60 targeting 110.40 and stop loss above 116.00 might be appropriate.