Weekly Report 05 - 09 / April / 2010

The image above shows that the descending channel that controls short term trading is driving the pair to maneuver around pivotal support 1.0585 - the previously breached neckline -. The Fibonacci correctional level of61.8% in addition to MA 100 will prevail due to support from the pair pushing it upwards. We expect the descending channel mentioned to add some pressure on the pair; therefore, we expect a bearish short term direction for this week that will start when 1.0515 is breached and head towards 1.0385 then 1.0310. The breach of 1.0685 and remaining above it will weaken chances of achieving the suggested scenario.

The trading range for today is among the key support at 1.0310 and the key resistance at 1.0795.

The short term 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 with the breach of 1.0515 targeting 1.0385 and stop loss above 1.0605, might be appropriate.