Weekly Report (24-28 October 2011)

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Trading is stuck between the resistance of the descending channel and 104.95 previously breached resistance that turned into support now, stochastic is about to enter overbought territory as well. Therefore, we expect an intraday downside move for today targeting mainly a breach of 104.95 to head toward 102.60. A daily closing above 106.10 will push us to reconsider the possible scenarios.

The trading range for the week may be among the 102.60 support and 107.00 resistance.

The short term trend is to the downside targeting 94.80 so long as 123.30 remain intact.

Previous Report

Support105.60104.95104.25104.00103.15
Resistance106.10106.50106.95107.60107.90
RecommendationBased on the charts and explanations above we recommend selling the pair around 106.10 targeting 104.00 and stop loss with four-hour closing above 106.95 may be appropriate.