Weekly Report (03-07 October 2011)

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While the overall trend is to the downside, during the past couple of days the pair has showed some signs of recovery, as it managed to trade back above the breached descending support of the channel and above 118.80 important support as well. In general, bearishness is still in favor, we will be waiting for a four-hour closing below 118.80 to signal another downside attempt toward 116.80, on the other hand, four-hour closing above 121.25 shall turn our outlook into near term bullish.

The expected trading range for the week is among the key support at 116.00 and the key resistance at 122.20.

The short term trend is to the downside so far as 150.00 remains intact targeting 112.00.

Previous Report

Support119.50118.70117.75116.90116.00
Resistance120.65121.30122.10122.65123.30
RecommendationBased on the charts and explanations above we recommend selling the pair with four-hour closing below 118.80 targeting 116.85 and stop loss with hourly closing above 119.50 may be appropriate.