Weekly Report 27/12 -30/ 12/ 2011

In accordance with our previous technical comment, the pair has declined violently after testing SMA 50 as seen on the provided daily graph. Now, we need to witness a sustained breakout below 23.6% Fibonacci of the downside wave from 1.6615 to 1.5270 to confirm the bearishness suggested for this week. Stochastic overlapped negatively reinforcing our constructive outlook. The soft technical target is seen around 1.5420, while a break of which will trigger a panic sell-off.

The trading range for this week is among key support at 1.5270 and key resistance at 1.5935.

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

Support1.55551.54601.54201.53751.5270
Resistance1.56801.57201.57801.58801.5935
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5650 targeting 1.5420 and stop loss above 1.5800 might be appropriate.