Weekly Report 22-26 / March / 2010

Throughout last week's trading the pair failed in stabilizing above 1.3805, represented in the 50% correction shown above, thus making it return this week to retest 61.8% correction levels at 1.3480 - 1.3490. A bearishcrossover sign is appearing on the MA's; whereas the ADX is showing a stable bearish trend. The breach of 61.8% correction this week could cause a bearish direction that targets 76.4% correction near 1.3100. The suggested count for the Elliott waves in the image appearing in the weekly chart above, insure our expectations of a daily closing below 1.3480 to insure the scenario. The signal is showing a suggested count for the waves, where it represents one of theIM scenarios with fewer targets; however, if more bearish direction targets are proved it will readjust to the upcoming scenario.

The trading range for today is among the key support at 1.3285 and the key resistance at 1.3730.

The general trend is to the upside if we do not witness a daily closing below 1.3485 with targets at 1.5150.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.3570 targeting 1.3100 and stop loss above 1.3800, might be appropriate.