Weekly Report1 - 5/ March / 2010

The pair is approaching the pivotal support between 88.50 - 88.20 that represent the neckline for the bearish technical pattern shown in the daily chart above. The positive signs appearing on the momentum indicators could push the pair attempt to fluctuate with a minor bullish correction for the last bearish wave, before the pair resumes the expected bearish short term direction for this week; which will start with the breach of 88.20 and target 86.90 then 85.00. Chances of this bearish wave continuing require trading to remain below 90.85.

The trading range for today is among the key support at 86.90 and the key resistance at 90.85.

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

Previous Report

Support88.5088.2087.7586.9086.40
Resistance89.5090.0090.8591.4092.15
RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 88.20 target 86.90 and stop loss above 89.50, might be appropriate.