Weekly Report 04 -08 / 01 / 2010

/

The royal pair correcting within a flat structure before activating the [IM] wave, which might represent the grand fifth wave as seen on the provided daily chart. Thereby, we believe that the direction is to be to the upside during the next week, but this highly predicted bullishness is to be confirmed with a break above the pivotal resistance areas of 0.9070, otherwise our count is to be reconsidered.

The trading range is among the key support at 0.8460 and key resistance now at 0.9205.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

Support0.88200.87600.87200.86750.8650
Resistance0.89350.90000.90700.91600.9235
RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.9070 targeting 0.9230 and stop loss below 0.8820 might be appropriate.