Weekly Report 24/05 -28/ 05 / 2010

Normal awaited pullback occurred with the weekly closing for 2 reasons:

1-Facing the neckline areas of our suggested neckline for the double bottom formation

2- Momentum indicators reached overbought zones.

Now, the suggested Elliott count appearing on Eye on pair report below alongside the positive effect of the previous built classical support of the double bottom could push the pair upwards once more during this week. We expect the bullish wave could start from the areas appearing on the provided chart.

The trading range for this week is among the key support at 0.8400 and key resistance now at 0.8960.

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

Support0.86050.85800.85500.85000.8480Resistance0.86600.87000.87200.87600.8820RecommendationBased on the charts and explanations above our opinion is, buying the pair from 0.8605 targeting 0.8820 and stop loss below 0.8480 might be appropriate.