Weekly Report 18 -22 / 01 / 2010

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The weekly closing below SMA 50 has opened the door for additional bearishness, as the pair is presently forming the CD leg of a harmonic AB=CD pattern. The secondary image of the weekly formation supports this negative scenario, while AROON has given a strong bearish sign. Technical target resides around 125.50.

Trading range for this week is among key support at 126.50 and key resistance now at 136.10.

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

Previous day Report

Support130.00129.40128.60127.90126.50
Resistance131.50132.50133.65134.15134.85
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 131.50 targeting 127.60 and stop loss above 134.15 might be appropriate.