Weekly Report 14/03 -18/ 03/ 2011
After touching our previous defined technical objective flawlessly at 112.40, the pair started to show some kind of recovery. Thereby, the negative effect of our captured negative divergence started to scatter gradually. Now, we are not completely sure if the pair intends to breach the neckline of the classical head and shoulders bottom pattern to activate the proposed Elliott count or the current violent upside from 112.40 will be limited below 115.60 zones once more. Consequently, we prefer staying aside until the pair gives off an obvious sign.
The trading range for this week is among key support at 110.50 and key resistance now at 118.60.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support113.65112.40111.60111.05110.50Resistance115.00115.60116.30116.80117.35RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.