Weekly Report 12/07 -16/ 07 / 2010

The royal pair inclined sharply in the past week as seen on the provided weekly chart, affected by the solid support that it found around the lower line of the descending channel and we still seechance for achieving further bullishness during this week;depending on the positive weekly candlestick structure. RSI 14 is still moving upwards while AROON down-colored in red is hitting the value of 70.00.These technical facts are to add further confirmation for our scenario. A break of 0.8400 could accelerate the move towards 0.8490 zones.

The trading range for this week is among the key support at 0.8180 and key resistance now at 0.8570.

The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.

Previous Report

Support0.83300.82950.82550.82050.8140Resistance0.84000.84200.84700.85000.8565RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8355 targeting 0.8500 and stop loss below 0.8260 might be appropriate