Weekly Report 16/05 -20/ 05/ 2011

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The pair succeeded in touching the full correctional level of Fibonacci for the CD leg of our previous caught bearish harmonic butterfly pattern as seen on the provided daily graph. This bearish harmonic structure has proved its efficiency during the previous period and we will continue depending on it during this week to suggest further bearish movements as it is still moving towards the extended technical objectives. The next level that could be touched resides at 127.2% Fibonacci projection of CD leg at 127.50 zones.

The trading range for this week is among key support at 124.00 and key resistance at 136.20

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

Support130.50129.25128.40127.60126.70
Resistance131.60132.50133.65134.80135.50
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 131.50 targeting 127.50 and stop loss above 134.20 might be appropriate.