Weekly Report 15 - 19 / March / 2010

The pair managed to achieve the breach of the neckline for the bearish technical pattern shown in our previous reports at 1.0645, currently hitting into the retest level for the breached major bullish pattern, which has been pointed out throughout the previous weeks, shown in the image above, at 1.0575. Bullish signs are appearing through the stochastic that could push the pair to retest the neckline for the bearish technical pattern at 1.0645 followed by a bearish reversal, where the pair will achieve through it the possible bearish direction over the short termtrend that will start with the breach of 1.0575 and head towards 1.0425 then 1.0310. This suggested scenario will prevail if do not witness a breakout below the resistance linefor the descending channel that is currently at 1.0715.

The trading rangeforthis week among the key support at 1.0315 and the key resistance at 1.0790.

The general trend is to the downside as far as 1.1095 remains intact with targets at 0.9910.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.0645 targeting 1.0515 and stop loss above 1.0715, might be appropriate.