Weekly Report 07/03 -11/ 03/ 2011

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Despite of the classical bullish probability of forming potential head and shoulders bottom pattern as we explained earlier but we have been able to catch two negative signs on the provided daily chart:

  • The bearish candlestick, which prevented the pair from penetrating the pivotal resistance of 115.45-115.60 obviously.
  • The negative divergence, appearing on RSI 14.

This contrarian between the classical outlook and the aforementioned negative signs forces us to stay aside until a clearer sign appears. In the interim, the provided Elliott count suggests that there is a possibility for achieving a slant downside correction but we will be patient until the pair uncovers its upcoming direction.

The trading range for this week is among key support at 111.60 and key resistance now at 117.55.

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

Support114.25113.65113.15112.80112.10
Resistance115.40115.75116.30116.75117.55
RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.