Weekly Report 08 -12 / 01 / 2010

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The royal pair succeeded in forming the right shoulder of the suggested head and shoulders bottom pattern, seen on the provided four-hour chart. We see that it ispresently hitting the neckline of this reversal classical pattern. A break of which will ease the path towards the technical objective at 0.8935 zones; therefore, apotential upside actions might be witnessed during this week.

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.

Support0.87200.86850.86400.86100.8555
Resistance0.88200.88600.89050.89350.9000
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8720 targeting 0.8925 and stop loss below 0.8610 might be appropriate