Weekly Report 22-26 / March / 2010

The pair failed in stabilizing above 50% correctional levellast week at 1.5270, entering into a volatile bearish wave to retest 61.8% correction at 1.4860. The negative pressures on the pair continue; whereas the RSI on the weekly chart is in a bearish direction attempting to breach the 30 points to the downside. The bearish wave formation that has started on October 2009 and forming an IM impulsive wave and one of the suggested scenarios with the least obvious targets in the image above; giving us a possible bearish trend that will insured with the breach of 1.4860 to the downside and therefore paving the way for more bearish movement towards 76.4% correction at 1.4345.

The trading range for today is among the key support at 1.4710 and the key resistance at 1.5615.

The general trend is to the upside if we do not witness a daily close below 1.4850 with targets at 1.7000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.5060 targeting 1.4765 and stop loss above 1.5225, might be appropriate.