Weekly Report 03/01 -07/ 01/ 2011

The pair failed to penetrate SMA 50 for the second time as seen on the provided four hour chart, clarifying that the bearish statistical trend line of this moving average is strong enough to act as a ceiling for the bearishness. Henceforth,the negative effectof the continuation rising wedge patternis still in progressand its extended targets reside at 127.2% and 161.8% of the upside rally from 105.40 to 112.15. Momentum and trend indicators support the bearish scenario, which we expect that it will dominate the movements during this week.

The trading range for this week is among key support at 104.80 and key resistance now at 111.60.

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

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 108.50 targeting 105.90 and stop loss above 110.55 might be appropriate.