Weekly Report 11-15 / 01 / 2010

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The pair is still developing the bullish scenario, which we explained earlier. It is still forming the CD leg of our suggested harmonic structure, seen on the provided daily chart. The technical target resides at 136.10 and might extend further towards 137.40 zones. The positive crossover appearing on Ribbons lines supports our overview. Henceforth, the short term outlook is to the upside. A break of 134.50 will take the pair directly towards the aforesaid objective.

Trading range for this week is among key support at 129.40 and key resistance now at 138.20.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

Support133.15132.50131.50130.50129.40
Resistance134.60135.50136.10136.90137.40
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 132.60 targeting 136.10 and stop loss below 130.50 might be appropriate.