Weekly Report 15 - 19 / February / 2010

The pair continues pressuring pivotal support that forms the suggested neckline for the bearish technical pattern, appearing in the daily chart above. The currently awaited pressure is through the rising wedge, where we need to witness an initial breach of minor support at 89.75m which will lead the neckline to reach 88.75.Stochastic is showing negative signs that support our expectations for this week for a bearish short term trend; main targets are mainly around 86.90. The bearish short term direction will prevail if the daily close remains below 92.30.

The trading range for today is among the key support at 87.75 and the key resistance at 91.30.

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

Previous Report

Support89.7588.7588.2087.7586.90
Resistance90.3090.9091.6092.3092.90
RecommendationBased on the charts and explanations above our opinion is selling the pair with the breakout of 89.75 targeting 88.75 and stop loss above 90.50, might be appropriate.