Weekly Report(22-26 August 2011)

width=640

The pair continues to settle below the descending trend line shown in image, where the 50 EMA is pressuring trading negatively, accompanied with negativity on stochastic over daily basis. Therefore, we will hold onto our bearish expectations for this week targeting 107.55 and 106.10. While two conditions are required, a clear breach of 109.90 and stability below 110.60.

The trading range for the week is among the major support at 106.10 and the major resistance at 112.35.

The short term trend is to the downside targeting 100.00 as long as 123.30 remain intact.

Previous Report

Support109.30108.90108.20107.55106.50
Resistance110.60111.05111.55112.35112.70
RecommendationBased on the charts and explanations above we recommend selling the pair around 110.60 targeting 108.20 and stop loss with four-hour closing above 111.05 may be appropriate.