Weekly Report (29 August- 02 September 2011)
The pairs bearishness on friday extended to approach the awiated targets around 124.00 and bounced again to trade near the breached support at 125.60. Trading among the main descending channel in addition to the negative pressure from the 50 EMA support our expectations for the continuation of the downside move this week initially 123.30 and may extend to 120.00. Steady daily closing below 126.75 is required for our expectations to remain valid.
The trading range for the week may be among the major support at 120.00 and the major resistance at 127.50.
The short term trend is to the downside targeting 112.00 as long as 150.00 remain intact.
Support125.05124.65124.00123.30123.00Resistance125.60126.15126.75127.50128.05RecommendationBased on the charts and explanations above we recommend selling the pair around 125.60 targeting 122.55 and stop loss with daily closing above 126.75 may be appropriate.