Weekly Report 07/03 -11/ 03/ 2011
The secondary image of the four hour interval shows how 88.6% Fibonacci retracement of the downside rally from 135.50 to 131.10 played the role of a pivotal barrier. From the aforementioned level, the pair slipped sharply, closing below SMA 50 as seen on the main weekly chart; whilst the negative signs of OsMA and Stochastic remain in the same case of the previous week. Thereby, we believe that the pair might move lower during this week, attempting to visit the lower line of the trading range areas. The initial support of 133.15 should be breached to ease the path for activating this anticipated classical scenario.
The trading range for this week is among key support at 129.40 and key resistance at 136.80.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support132.50131.60131.05130.50129.40Resistance134.25135.00135.50136.20136.80RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 133.15 targeting 129.70 and stop loss above 135.50 might be appropriate.