Weekly Report 18/04 -22/ 04/ 2011
In line with our previous report, the pair collapsed after breaching the neckline areas of the bearish classical pattern. Moving freely below SMA 50 along with the bearish candlestick structure over bigger time frames argues us to stay on the short side during this week. Coming below 118.65 will open the door up for achieving the extended technical targets of the pattern starting from 116.80 zones, followed by 115.60 areas. RSI 14 may cause some kind of fluctuation but we don't think that it has the ability to change the obvious bearish direction.
The trading range for this week is among key support at 114.75 and key resistance now at 123.15.
The general trend over short term basis is to the downside targeting 97.90 as far as areas of 132.50 remain intact.
Support119.10118.65117.85117.45116.80Resistance119.45120.00120.50121.05121.45RecommendationBased on the charts and explanations above our opinion is, selling the pair around 119.50 targeting 116.80 and stop loss above 121.50 might be appropriate.