Weekly Report01 -05 /02 / 2010

The pair continues trading within a descending short term channel and gradually close to forming a bearish technical pattern, seen in the chart above; whereas its neckline is at 89.25 that meet with 50% Fibonacci correction. We can expect the pair to succeedin breaching this level and therefore opening the way to achieve a possible bearish short term direction for this week. We could witness some minor bullish correction before activating the expected bearish direction that mainly targets 86.90 and then 84.80. It is vital that 92.90 remain intact to maintain chances of achieving the predicted bearish direction.

The trading range for today is among the key support at 86.90 and the key resistance at 93.75.

The general trend is to the downside as far as 102.60 remains intact with targets at 82.60.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 89.25 target 87.80 and stop loss above 90.60, might be appropriate.