Weekly Report 21/02 -25/ 02/ 2011
The pair is facing a very sensitive situation since a range trading zones has been drawn on the weekly graph, where the resistance line of this range is very close to the current trading levels. At the same time, Stochastic is showing clear overbought signs, whilst the four hour chart started to show signs of forming a minor rising wedge pattern. These factors argue us to suggest potential downside recovery during this week, targeting 131.60 areas and a break of which will send the pair towards 129.85. Conversely, areas of 136.50-136.80 should hold to keep this proposed correction valid.
The trading range for this week is among key support at 130.50 and key resistance at 139.75.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support134.50133.60132.50131.60130.50Resistance135.50136.20136.80137.30138.40RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 134.50 targeting 131.65 and stop loss above 136.50 might be appropriate.