Weekly Report13/12 -17/ 12/ 2010

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The slight inclines occurred during the previous week shows that the pair intends to draw a medium term descending wedge as seen on the provided weekly chart. SMA 50 and SMA 100 are still providing the pair with solid resistance and thus, the mixture between these classical factors and the suggested Elliott count makes us keep our negative outlook unchanged during this week. Note that, RSI 14 is moving below the value of 50, whilst Stochastic is still trending downwards, supporting our overview.

The trading range for this week is among key support at 127.60 and key resistance at 136.80.

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

Support131.60130.50129.40128.45127.60
Resistance133.20133.60134.80135.50136.20
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 133.20 targeting 130.50 and stop loss above 135.00 might be appropriate.