Weekly Report 09/04 - 13/04/ 2012

On Friday, the pair has mildly corrected the aggressive downside rally seen during the past week after touching SMA 50 -colored in red- as seen on the provided daily chart. Stochastic may cause more fluctuation but we can see a confirmed sign on Parabolic SAR indicator since it covers the bearish wave that started around 1.6060 zones as well. A break below the pivotal support of 1.5820 will confirm the bearish scenario suggested for this week.

The trading range for this week is among key support at 1.5515 and key resistance at 1.6165.

The general trend over short term basis is to the downsidetargeting 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 1.5900 targeting 1.5630 and stop loss above 1.6080 might be appropriate.