Weekly Report 21 - 25 / March / 2011

The pair traded between 23.6% and 38.2% Fibonacci correction according to the image above, where trading appears to be showing that the minor bullish technical pattern could lead to more bullish correction within the initial downside channel, according to the four hour interval. On the other hand, the MA 50 is heading to the downside with ongoing negative pressure on intraday trading. We expect to witness some bullish correction before heading towards resuming more overall bearish movement this week, initially targeting around 0.8800. The daily closing is below 0.9180 that is essential to resume this scenario.

The trading range for this week is among the key support at 0.8800 and the key resistance at 0.9245.

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

Previous Report

Support0.90000.89500.88850.88000.8750
Resistance0.90700.91250.91800.92450.9270
RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.9125 targeting 0.8885 and stop loss above 0.9245, might be appropriate.