Weekly Report (05-09 September 2011)

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The pair continues to trade negatively approaching the minor support at 108.00, the level may be a barrier for the downside move, where Stochastic is oversold as well. Therefore, we expect a downside move affected by the the main descending channel, however we need a breach over four-hour basis below 108.00 to confirm the move.

The trading range for the week may be among the major support at 104.40 and the major resistance at 112.00.

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

Previous Report

Support108.00107.55106.80106.15105.95
Resistance109.60110.05110.85111.60112.00
RecommendationBased on the charts and explanations above we recommend selling the pair with four-hour closing below 108.00 targeting 106.15 and stop loss above 110.05 may be appropriate.