Weekly Report (24-28 October 2011)

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The pair is fluctuating near the resistance of the descending channel since last week as shown on image, settling below the resistance supports our view for a downside bias this week. The main condition to achieving this decline is steady daily closing below 121.85, targeting initially 120.45 and 118.10.

The trading range for the week may be among the 116.95 support and 123.35 resistance.

The short term trend is to the downside targeting 122.00 so long as 150.00 remain intact.

Previous Report

Support121.50120.85120.45119.75119.10
Resistance121.85122.60123.35124.00124.65
RecommendationBased on the charts and explanations above we recommend selling the pair around 121.85 targeting 119.10 and stop loss with four-hour closing above 122.60 may be appropriate.