Weekly Report 21 - 25 / February / 2011

According to the image above, the pair is trading within the sideway range between 0.9750 and 0.9330 after touching this range's resistance level, while a bearish pattern has appeared throughout the journey to the downside since the neckline for this pattern has been breached around 0.9525. Hence, we expect the way to be open in front of resuming more expected bearish movement for this week starting initial targets around the highlighted support range, then attempting to breach it in order to make it easier on the pair to head towards 0.9200. The positivity appearing through momentum indicators are causing some fluctuation before resuming the awaited downside trend, while the breach of 0.9525 - 0.9575 could postpone resuming expectations.

The trading range for this week is among the key support at 0.9200 and the key resistance at 0.9620.

The short term trend is to the downside as far as 1.0330 remains intact with targets at 0.8000.

Previous Report

Support0.94500.93650.93300.92700.9200
Resistance0.95250.95750.96200.96900.9750
RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.9525 targeting 0.9330 and stop loss above 0.9620, might be appropriate.