Weekly Report 03/01 -07/ 01/ 2011

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The mixture between classical studies and Elliott count over weekly basis proves that the pair still has downside targets to be reached. Actually, the negative weekly closing below the support line of the descending pattern has added further confirmation to the suggested Elliott count, where we believe that the grand fifth wave of the IM structure is still in progress. Adding those technical factors to the harmonic crab pattern, which we discussed during the previous two weeks-click on the previous report for more details about this harmonic overview- signal that more downside movements are underway during this week and also over short term basis.

The trading range for this week is among key support at 121.95 and key resistance at 130.50.

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

Support125.50124.30123.60122.55121.95
Resistance126.80127.30128.40129.40130.50
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 126.80 targeting 122.55 and stop loss above 129.60 might be appropriate.