Weekly Report 09/05 -13/ 05/ 2011

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Friday's closing was also achieved below 76.4% Fibonacci retracement of the CD leg of our previous captured bearish harmonic butterfly pattern. According to the harmonic rules, the path becomes clear to revisit 100% Fibonacci level at 130.10 and a break of which will send the pair violently towards 127.2% Fibonacci projection of the same levels as seen on the provided daily graph since we are talking about the extended targets, noting that Stochastic might cause some kind of fluctuation but trading stabilized below the lower line ok Keltner channel. To conclude, possible bearishness might be witnessed during this week as far as 135.00 levels remain unbroken.

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

Support131.50130.10129.40128.70127.60
Resistance132.50133.65134.20135.00136.20
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 132.50 targeting 128.70 and stop loss above 135.00 might be appropriate.