Weekly Report 31/05 -04/ 06 / 2010
The bearishness of our captured bearish harmonic AB=CD pattern, which we explained on past Friday's report was activated successfully as seen on the provided chart. Now, the recently established bearish channel could add further pressure on the pair, particularly if it breached 131.35 zones. AROON up-colored in green- shows that, the strength of the bearish trend is increasing for the time being. To recap, the bearishness of the aforesaid pattern is still in favor and possible downside movements could be seen during this week. Technical targets reside around 129.70 zones.
The trading range for this week is among key support at 127.60 and key resistance at 137.30.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support131.35130.50130.00129.10128.40Resistance132.50133.60134.90135.50136.20RecommendationBased on the charts and explanations above our opinion is, selling the pair from 133.15 targeting 129.70 and stop loss above 135.60 might be appropriate.