Weekly Report(21-25 November 2011)
The pair is trading with slight positivity since morning affected by positivity on momentum indicators, while we are still waiting for some upside correction testing 122.00 areas before resuming the intraday downside move for today. The 50 EMA continues to pressure trading negatively, while the main target to the downside is located at 119.50 which is the retest resistance level for the main descending channel that was breached previously.
The pair started the week with a clear bearish bias where its approaching the critical support at 120.75. This level is a neckline for a bearish technical pattern that is underdevelopment in-case the pair managed to breach the level the door will be open toward 119.15 and 116.85. The 50 EMA is pressuring the pair to the downside thus supporting our expectations for a downside move this week , the move requires stability below 122.25.
The trading range for the week may be among the 116.85 support and 122.25 resistance.
The short term trend is to the downside targeting 122.00 so long as 150.00 remain intact.
|Recommendation||Based on the charts and explanations above we recommend selling the pair with a breach below 120.75 targeting 119.15 and stop loss with four-hour closing above 121.70 may be appropriate.|