Weekly Report 01-05 / 03 / 2010

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The pair moved aggressively to the downside during the previous week, proving the strong negative pressure obtained from the bearish classical pattern seen on the provided daily chart. Currently, further bearish actions could be seen during this week towards the projected objective seen on the chart, while being supported by the suggested Elliott count. EMA10-80 Ribbons lines act as a ceiling for this negative scenario.

The trading range for this week is among key support at 117.40 and key resistance now at 125.50.

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 Report

Support120.90120.00119.30118.35117.40
Resistance121.70122.65123.10123.90124.60
RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 120.90 targeting 117.40 and stop loss above 123.80 might be appropriate.