Weekly Report13/12 -17/ 12/ 2010

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In addition to our captured Elliott count, which offers the probability of forming a flat correction, we could have been capable of catching a bearish continuation pattern-rising wedge- on the four hour interval. The support of this pattern resides around 110.50 zones and therefore, we need to witness a breakout below this level to support the bigger bearish daily picture. RSI 14 is still negative until this moment and consequently, we still see chances for achieving descending actions during this week.

The trading range for this week is among key support at 107.30 and key resistance now at 114.70.

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

Support110.50110.00109.45108.50107.30
Resistance111.60112.10112.80113.60114.25
RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 110.50 targeting 108.00 and stop loss above 112.40 might be appropriate.