Weekly Report 08 -12 / 01 / 2010

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The pair has collapsed downwards after breaching the initial support level of 125.50, revving that the second corrective wave of the medium term basis (B) is in progress, seen on the provided daily chart. The technical target of this aforesaid wave resides at 116.00. Thereby, potential bearish movements might be witnessed during this week. Ribbons lines (EMA10-80) act as a ceiling for the anticipated negative scenario.

Trading range for this week is among key support at 116.00 and key resistance now at 126.10.

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

Support121.30120.65120.00119.40118.00
Resistance122.10123.15124.60125.00125.50
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 121.90 targeting 117.50 and stop loss above 124.60 might be appropriate.