Weekly Report08 -12 / February / 2010

The pair is nearing strong resistance at 1.0875 but managed to fail at building a base above MA 20 at 1.0750, showing a bearish candlestick formation in the side image, accompanied by bearish reversal on momentum indicators; whereas the ADX is showing the start of a possible bearish trend. Due to these technical facts and as long as trading remains below key resistance mentioned above, we expect a bearish trend this week.

The trading range for today is among the key support at 1.0310 and the key resistance at 1.1000.

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.0750 targeting 1.0505 and stop loss above 1.0875, might be appropriate.