Weekly Report 18 -22 / 01 / 2010

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The mixture between classical and harmonic studies proved that the royal pair has alreadyis attackingthe sensitive areas -cluster support of 0.8820-, failing to maintain levels above the downtrend line. Thus, the path is cleared towards 0.8580 zones to complete the harmonic structure. Thereby, we expect bearish wave during the coming week. This downside is favored as far as 0.9030 remains intact.

The trading range for this week is among the key support at 0.8400 and key resistance now at 0.9160.

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.

Previous day Report

Support0.87600.87200.86550.85800.8530
Resistance0.88650.89050.900.90300.9070
RecommendationBased on the charts and explanations above our opinion is, selling the pair from 0.8820 targeting 0.8580 and stop loss above 0.9030 might be appropriate.