Weekly Report (26-30 September 2011)
The pair continues to test the support of the descending channel shown on image, and this is considered a negative sign that supports the downside bias. The 50 EMA continues to pressure intraday and short term trading negatively, in addition to the overbought stance on stochastic. Accordingly, we hold onto our expectations for a downside move this week targeting the psychological level at 100.00 and may extend to 99.40. Taking into consideration that stability below 103.75 is required to achieve these targets.
The expected trading range for the week is among the key support at 99.40 and the key resistance at 104.30.
The short term trend is to the upside so far as 123.30 remains intact targeting 94.80.
|Recommendation||Based on the charts and explanations above we recommend selling the pair with four-hour closing below 102.40 targeting 100.00 and stop loss above 103.75 may be appropriate.|