The pair settled below SMA 50, which is a negative sign that supports the suggested bearishness, targeting mainly the critical support level at 105.05, where the neckline of the bearish pattern is below the 100.00 level. From here, we must observe the pair's behavior around the mentioned support level, as breaching this level might support the downside movement to extend this week, while a breach of 106.85 might brought the positivity back.
The trading range for this week is among the major support at 105.85 and the major resistance at 109.45.
The short-term trend is to the downside as far as 123.30 remains intact, targeting 94.80.
|Recommendation||Based on the chart and explanations above, our opinion is selling the pair around 106.85, targeting 105.05 and stop loss above 108.00 might be appropriate|
Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009