Weekly Report(27-30 Dec 2011)


Trading remains confined within the minor ascending channel which is a continuation bearish flag formation, this pattern supports the continuation of the downside move this week, where breaching the support of the channel at 101.60 is the only requirement to activate the bearish scenario. The 50-EMA supports negativity, while stochastic is providing positive signs strengthening the support level. The bearish scenario will remain valid so long as 102.55 is intact.

The trading range for this weel is expected among the key support at 99.40 and the key resistance at 103.35.

The short term trend is to the downside as far as 150.00 remains intact with targets at 112.00.

RecommendationBased on the charts and explanations above we recommend selling the pair with a breach below 101.60 targeting 100.00 and 99.40 ,stop loss with four-hour closing above 102.55 may be appropriate