Weekly Report 27/12 -31/ 12/ 2010

The pair continued its decline, closing below 76.4% Fibonacci level of XA leg as seen on the provided daily chart. Thus, our previous captured harmonic crab pattern proved is proving its accuracy. Now, we eye on 127.2% Fibonacci of XA leg, where 224% of BC leg exists at 124.35 to be our detected technical target of the completion of this harmonic formation. AROON is definitely negative, while Stochastic might cause some kind of fluctuation due to moving inside oversold areas. Anyway, our outlook remains bearish during this week.

The trading range for this week is among key support at 124.35 and key resistance at 131.60.

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

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 128.25 targeting 124.35 and stop loss above 131.10 might be appropriate.