Weekly Report 06/12 -10/ 12/ 2010

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The pivotal resistance levels around 111.60 forced the pair to move aggressively to the downside during Friday's trading, whilst RSI 14 started to trend downwards once more. Therefore, the third wave of bigger B wave might be in progress despite of internal corrections. Actually, the nature of flat corrective structure appears obviously on the price behavior and thus, we still see chances for achieving additional bearishness during this week, while a decisive breakout below 110.00-109.90 zones will be a very negative indication. Technical targets of our suggested B wave resides around 107.30 zones.

The trading range for this week is among key support at 107.30 and key resistance now at 114.25.

The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.

Previous Report

Support110.00109.45108.40108.00107.30
Resistance111.05111.60112.10112.80113.60
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 111.05 targeting 108.40 and stop loss above 113.15 might be appropriate.