Weekly Report 16/04 -20/04/ 2012

Negatively influenced by approaching the key resistance level of 1.5995 and by the negative sign appearing on Parabolic SAR, the pair has moved sharply to the downside forming a bearish engulfing candlestick pattern as seen on the provided chart. Additionally, Stochastic has overlapped bearishly solidifying the technical prospective of achieving further drops during this week. A break below the initial support of 1.5785-1.5780 will accelerate and confirm the scenario.

The trading range for this week is among key support at 1.5515 and key resistance at 1.6125.

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

Support1.57801.56801.56301.55851.5515
Resistance1.58801.59251.60001.60751.6125
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5840 targeting 1.5600 and stop loss above 1.6025 might be appropriate.