Morning Report

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Despite of achieving a positive closing above SMA 50 but the pair started to show signs of weakness since a clear bearish candlestickstructurewas formedover four hour interval. Besides, the pair is currently trading around the bearish trend line, which dominated the movements since the third week of November 2010. Henceforth, we hold onto our negativeclassical outlook, which is based on resuming the bearishness of the rising wedge pattern towards the extended technical targets. We remind you that our previous detected technical target at 107.30 was reached and 105.90 is under our microscope for the time being.

The trading range for today is among key support at 106.15 and key resistance now at 111.05.

The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.

Previous Report

Weekly Report

Support108.50108.00107.30106.80106.15
Resistance109.05109.45110.00110.50111.05
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 108.95 targeting 106.80 and stop loss above 110.55 might be appropriate.