Weekly Report (05-09 March 2012)

A false break above the key 1.5925 resistance suggests we could fade the move to the downside, as the pair went back to trade below the 200-days average. Meanwhile, a bearish divergence is seen on relative strength momentum indicator, thus we look for a downside move this week targeting initially 1.5650 Areas. The move may extend if we see steady trading below the 50-days Average again.

The trading range for this week is expectedamong key support at 1.5300 and key resistance at 1.6165.

The general trend over short term basis is to thedownsidetargeting1.4225as far as areas of1.6875remain intact.

Previous Report

RecommendationBased on the charts and explanations above, we recommend selling the pair around 1.5900 targeting 1.5800 and 1.5645. Stop loss above 1.6000