Weekly Report (03-07 October 2011)

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The pair is moving along an intraday descending channel as shown in image, within the context of a major downside trend, however it's approaching 101.90 important support while stochastic is oversold, therefore we remain neutral for now, awaiting a breach either below 101.90 or above the channel's resistance followed by 104.85 pivotal resistance.

The expected trading range for the week is among the key support at 97.00 and the key resistance at 105.00.

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

Previous Report

Support102.75102.30101.90101.35100.90
Resistance103.25104.00104.85105.30105.90
RecommendationBased on the charts and explanations above we recommend selling the pair with four-hour closing below 101.90 targeting 100.00 and 97.00 stop loss above 103.00 may be appropriate.