Weekly Report 06/12 -10/ 12/ 2010

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The pair came below the key support levels of 131.60, trading below the most important support levels of 130.50, respecting the bearish effect of the rising wedge pattern, which appeared on the four hour interval-check the previous report-. This bearishness is expected to continue during this week based on the suggested Elliott count over weekly chart. Stochastic is still moving lower, supporting our negative overview. A four hour closing below 129.40 will be able to bring panic sell-off actions.

The trading range for this week is among key support at 125.50 and key resistance at 134.80.

The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.

Previous Report

Support129.25128.40127.60126.70125.50
Resistance131.60132.50133.15133.60134.20
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 131.00 targeting 126.70and stop loss above 133.20 might be appropriate.