Weekly Report(19-23 September 2011)

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The 38.2% Fibonacci correction level halted the upside move for the pair, where it reversed to resume the downside journey within the short term descending channel. Stochastic is overbought and may lead to some fluctuations and a retest of 105.70-106.20 area before heading to the downside this week , targeting 102.05. Steady daily closing below 106.90 is necessary for our expectations to remain possible.

The expected trading range for the week is among the key support at 102.05 and the key resistance at 107.20.

The short term trend is to the downside so far as 123.30 remains intact targeting 94.80.

Previous Report

Support105.05104.80104.25103.50102.85
Resistance105.70106.20106.90107.20107.90
RecommendationBased on the charts and explanations above we recommend selling the pair around 105.70 targeting 103.50 and stop loss with four-hour closing above 106.90 may be appropriate.