Weekly Report(19-23 Dec 2011)


Trading settles within a narrow range illustrated by the tiny symmetrical triangle shown above, while the 50-EMA continues to pressure trading to the downside over intraday and short term basis, the continuation triangle pattern supports our expectation for a downside move this week, targeting a test and breach of the previous bottom at 100.75 followed by acquiring the complete target for the previously breached bearish technical pattern -which was completed by breaching 104.75- at 97.80. Steady trading below 104.45 is required for our expectations to remain valid.

The trading range for today is expected among the key support at 97.80 and the key resistance at 102.45.

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

RecommendationBased on the charts and explanations above we recommend selling the pair with four-hour closing below 100.75 targeting 99.40 and 97.80 , stop loss with four-hour closing above 101.75 may be appropriate