Weekly Report 28/02 -04/ 03/ 2011

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Resuming our classical series, which we started in the previous, we can see on the four hour chart that the pair succeeded in forming a new reversal pattern that could be added to the rising wedge which we discussed in details earlier-click on the previous report for more details-. The pair is challenging the neckline of the suggested head and shoulders top pattern; whilst SMA 50 plays the role of a ceiling. Henceforth, we still see chances for achieving possible bearishness during this week. The scientific technical objective of the pattern resides at 109.80 but it will not reach it unless the neckline is breached and clearing 110.75 zones.

The trading range for this week is among key support at 109.05 and key resistance now at 115.40.

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

Support111.60111.05110.50109.50109.05
Resistance112.80113.60114.25115.00115.40
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 112.40 targeting 109.85 and stop loss above 114.35 might be appropriate.