Weekly Report (15-19 August 2011)

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The pair traded with a positive bias since Friday evening approaching a previously breached horizontal support turned into resistance at 125.65. Trading continues within the main descending channel show in image, In addition to the negative pressure from the 50 EMA, therefore we expect the resumption of the downside move during this week targeting mainly 121.10 while a breach above 125.65 with daily closing may delay achieving the awaited targets.

Trading range for the week is among the major support at 121.10 and the major resistance at 127.70.

The short term trend is to the downside targeting 112.00 as long as 150.00 remain intact.

Previous Report

Support125.05124.65124.00123.30122.55
Resistance125.65126.20126.70127.25127.70
RecommendationBased on the charts and explanations above we recommend selling the pair around 125.65 targeting 121.10 and stop loss with daily closing above 126.70 may be appropriate.