Weekly Report 11-15 / 01 / 2010

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The royal pair has inclined sharply, respecting the previous explained harmonic formation. It is currently hitting the minor downtrend line, seen on the provided daily chart. A breakout occurs above 0.9070 will signal that the correction has been completed and that the [IM] wave -fifth wave- has been activated, where the bullishness is to continue towards the initial resistance at 0.9205 followed by 0.9350.

The trading range for this week is among the key support at 0.8690 and key resistance now at 0.9350.

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.

Support0.89650.89050.88600.88200.8760
Resistance0.90700.91150.92050.92400.9350
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.9000 targeting 0.0.9205 and stop loss below 0.8840 might be appropriate.