Weekly Report 03/05 -07/ 05 / 2010

Sideways actions controlled the movements during the past week as seen on the secondary daily candlesticks structure but Friday's bullishpattern indicates that, the bullishness might be in favor during this week. The four-hour chart is still building a technical base to activate a clear breakout above the neckline areas of the classical pattern, seen on the main chart. Note that, 0.8635 areas could be tested before achieving the awaited positive scenario.

The trading range for this week is among the key support at 0.8480 and key resistance now at 0.8865.

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

Support0.86600.86300.85800.85300.8480Resistance0.87000.87200.87600.88300.8865RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8635 targeting 0.8820 and stop loss below 0.8520 might be appropriate.