Weekly Report 24/01 -28/ 01/ 2011

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The pair currently trading around 76.4% Fibonacci retracement of the downside rally from 134.20 to 125.50 and it couldn't achieve a daily closing above it. Thus, we still look at the incline from 125.50 to the current levels as a correction although it can be described as a sharp correction. At the same time, the four hour chart offers the probability of forming a bearish harmonic crab pattern with a range trading areas. Consequently, we will be neutral until the pair decides if it will crossover 76.4% or it will move downwards. Note that, 131.50 are the decisive areas in our case.

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

Support131.60130.50129.40128.40127.60
Resistance132.50133.60134.80135.50136.20
RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.