Weekly Report 26/09 -30/ 09/ 2011

The pair is still mildly correcting the sharp declines that occurred during the previous period, where the secondary image of the four-hour interval suggests that the upside actions from the pivotal support of 1.5330 should be treated as a recovery. The bearishness is still favored during this week due to the negativity of the weekly time scale as the pair didn't reach the scientific technical objective of the double top formation. We might see some kind of fluctuation due to the oversold sign on Stochastic, but if 1.5330 is taken, the pair will neglect this sign.

The trading range for this week is among key support at 1.5000 and key resistance at 1.5820.

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 1.5495 targeting 1.5180 and stop loss above 1.5690 might be appropriate.