Weekly Report 17/05 -21/ 05 / 2010

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The medium term support of 0.8400 zones assisted the pair to build a double bottom formation as seen on the provided daily chart. All what the royal pair needs to confirm the potential bullish outlook during this week is, breaching the upper line of the descending channel. We do believe that the positive sign appearing onindicators could help it to reach the neckline of the pattern, while a break of which could send it upwards to the detected technical objective, seen on the image.

The trading range for this week is among the key support at 0.8400 and key resistance now at 0.8820.

The general trend over short term basis is to the upside, targeting 0.9720 as far as areas of 0.8400-0.8380 remain intact.

Previous Report

Eye on the pair

Support0.85500.85000.84800.84200.8400Resistance0.86050.86350.87000.87200.8760RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8550 targeting 0.8720 and stop loss below 0.8400 might be appropriate.