Weekly Report 19/09 -23/ 09/ 2011

The market has opened with a gap below the pivotal support -turned into resistance- of 1.5780 as seen clearly on the secondary four-hour graph. As we numerously discussed, this level represents a neckline for a potential double top over weekly studies; whilst the negative pressure from moving averages combination continue affecting the pair. Thereby, we see chances for achieving additional downside actions during this week, supported by the negativity on Stochastic. Of note, the gap might be cover before resuming the classical bearish trajectory. Ultimately, a break below 1.5655 will accelerate the awaited wave.

The trading range for this week is among key support at 1.5345 and key resistance at 1.6190.

The general trend over short term basis is to the downsidetargeting 1.4225 as far as areas of 1.6875 areas remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5750 targeting 1.5475 and stop loss above 1.5940 might be appropriate.