Weekly Report 28/06 -02/ 07 / 2010
The royal pair is still moving above the support levels of the trading range areas that were recently created between 0.8200 and 0.8380 zones as seen on the provided daily chart. Therefore, we still think that these range areas might dominate the movements and the support it found a round 0.8180, alongside the positive sign appearing on Stochastic might bring a re-testing action for the ceiling of these areas. Thereby, potential upside could be witnessed during this week but area of 0.8260 should be breached first.
The trading range for this week is among the key support at 0.8060 and key resistance now at 0.8420.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
Support0.82050.81800.81400.81000.8060Resistance0.82600.83150.83550.83800.8400RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above0.8260 targeting 0.8380 and stop loss below 0.8170 might be appropriate.