Weekly Report 22-26 / 03 / 2010

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The royal pair has found a solid support between 0.8905-0.8935 areas that have pushed it upwards aggressively. The bullish engulfing candlestick pattern which was formed on the daily chart supports the technical idea that, the CD leg of the allover harmonic structure hadn't been completed yet and the pair still has potential targets to be reached at 161.8% Fibonacci of XA leg. Therefore, possible bullishness might be seen during this week, supported by the positive signs appearing on indicators.

The trading range for this week is among the key support at 0.8760 and key resistance now at 0.9290.

The general trend over short term basis is to the upside, targeting 0.9720 as far as areas of 0.8400 remain intact.

Previous Report

Support0.90000.89350.88850.88200.8760
Resistance0.90700.91150.91400.92050.9290
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.9000 targeting 0.0.9205 and stop loss below 0.8860 might be appropriate.