Weekly Report 28/02 -04/ 03/ 2011
Respecting our previous week analysis, the pair declined sharply within the detected range trading areas as seen on the provided weekly graph. We have been able to catch three negative signs that argue us tosuggest potential bearish actions during this week as follows:
- The bearish engulfing candlestick formation.
- Moving freely below SMA 50.
- The bearishness appearing on OsMA and Stochastic indicators.
The pivotal support of 128.40 is now under our technical microscope, while areas of 134.20 should hold to protect this scenario.
The trading range for this week is among key support at 127.65 and key resistance at 135.50.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support131.05130.00129.25128.40127.65Resistance132.50133.15133.65134.20135.50RecommendationBased on the charts and explanations above our opinion is, selling the pair around 131.80 targeting 128.40 and stop loss above 134.20 might be appropriate.