Weekly Report 23/5 -27/ 05/ 2011

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Our previous harmonic scenario of achieving the extended technical objectives of the bearish harmonic pattern is still valid. When we look deeper at the price behaviors occurred during the previous week, we will find that the pair didn't show any big move but it succeeded in talking Stochastic towards the overbought areas. Further more, we can see signs of drawing a bearish harmonic formation on the indicator. Thereby, the bearishness will be in favor during this week and all what we need is a sustained breakout below 132.25 to confirm this suggested negative scenario.

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
Resistance133.15133.60134.20135.50136.20
RecommendationBased on the charts and explanations above our opinion is, selling the pair with a breakout below 132.25 targeting 128.40 and stop loss above 135.80 might be appropriate.