Weekly Report 11/04 -15/ 04/ 2011
The pair was able to draw a shooting star pattern as seen on the subsidiary four hour chart. This reversal pattern alongside the triple negative divergence of RSI 14 reflects signs of weakness. Thus, we believe that the pair is on its way to correct the entire upside wave that started from 106.80. The psychological levels around 125.00 should act as a ceiling; whilst a breakout below 120.70 will bring panic selling pressures.
The trading range for this week is among key support at 118.65 and key resistance now at 126.40.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support122.45121.90121.05120.70119.80Resistance123.35124.15125.00125.50126.40RecommendationBased on the charts and explanations above our opinion is, selling the pair around 123.00 targeting 120.20 and stop loss above 125.00 might be appropriate.