WeeklyReport(28 Nov - 02 Dec 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 maintains stability below the pivotal support at 120.75, which is a previously breached neckline for a bearish technical pattern. The 50 EMA coincides with this level to add more strength towards this resistance. Therefore, we still think that a downside move is likely for this week to resume the overall bearish trend within the descending channel. A breach above 120.75 will delay acquiring the awaited target at 118.00.
The trading range for the week may be among the 116.25 support and 122.20 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 around 120.75 targeting 117.40 and stop loss with four-hour closing above 122.20 may be appropriate|