Weekly Report 11/04 -15/ 04/ 2011
For the fourth consecutive day, the pair is trading around 127.2% Fibonacci projection of CD leg of our efficient bullish harmonic pattern. It seems that the bullishness has lost its steam since momentum indicators started to show clear negative signs and at the same time, the four hour chart-secondary image- shows potential classical probability, which will be confirmed with a breakout below 137.95 zones. To conclude, we should observe the price behaviors until the pair breaches through 137.95 and if that occurred then we will put the full correctional level of CD at 135.20 under our technical microscope.
The trading range for this week is among key support at 134.20 and key resistance at 143.30.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support137.95136.80136.20135.50135.00Resistance139.25139.75140.40141.45142.60RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 137.95 targeting 134.20 and stop loss above 140.50 might be appropriate.