Weekly Report (12-16 September 2011)

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Last week closing below the horizontal pivotal support at 106.20 added more confirmation to the continuation of the downside bias. The pair continues to trade within the descending channel shown in image. The 50 EMA also support the downside move. Therefore, we continue to expect bearishness this week targeting mainly the support of the channel at 102.90, taking into consideration that steady daily closing below 106.20 is required.

The trading range for the week is expected among the key support at 99.80 and the key resistance at 107.20.

The short term trend is to the downside as far as 123.30remains intact with targets at 94.80.

Previous Report

Support104.25103.50102.85102.05101.35
Resistance105.60106.20107.20108.05108.95
RecommendationBased on the charts and explanations above we recommend selling the pair around 106.20 targeting 102.90 and stop loss with daily closing above 107.20 may be appropriate.