EUR/USD Weekly Technical Report 15-19/10/2012

 The pair couldn’t hit the psychological level of 1.3000 and started to show strong bearish tendencies within the descending channel once again. Additionally, SMA 20 continues to act as a solid resistance and thus, the bearish picture may come back into focus during this week but it will not be confirmed unless the pivotal support regions of 1.2825 are eroded. Stochastic may cause some kind of fluctuation but MACD remains negative; whilst Vortex couldn’t give off a clear sign. In result, we will not join bears unless the pair takes 1.2825-1.2810 boundaries.

The trading range for this week is among key support at 1.2700 and key resistance at 1.3165.

The general trend over short term basis is to the    downside    targeting    1.1865    as far as areas of    1.3550    remain intact.

Support    1.2890    1.2825    1.2750    1.2700    1.2630
Resistance    1.2955    1.3000    1.3055    1.3080    1.3165
Recommendation    Based on the charts and explanations above our opinion is, selling the pair below 1.2825 targeting 1.2600 and stop loss above 1.3055 might be appropriate this week.