Weekly Report 01 -05 / 02 / 2010

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The royal pair is currently forming the internal forth wave as seen on our proposed count. The awaitedtechnical target of this forth wave resides around 0.8820-0.8830 zones, where the pair will obtain the momentum it needs to start the fifth wave. Therefore we expect a temporarily upside correction during this week before resuming the downside rally.

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 Report

Support0.86550.86100.85800.85300.8455
Resistance0.87600.88200.88650.89050.9000
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8670 targeting 0.8830 and stop loss below 0.8560 might be appropriate.