Weekly Report 19/03 -23/03/ 2012

The initial support around 1.5640 zones and the support of the momentum descending channel played a big role pushing the pair higher as seen on the provided daily chart. Actually, the bearish harmonicpossibilty5-0 patternstarted in July, 2011 remains valid as far as the D point at 1.5995-1.6000 zones remains intact. A break below 1.5785 will confirm resuming the downtrend; whilst taking 1.6000 decisively will give us a rational reason for pause.

The trading range for this week is among key support at 1.5460 and key resistance at 1.6165.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5860 targeting 1.5640 and stop loss above 1.5990 might be appropriate.