Weekly Report 26/07 -30/ 07 / 2010
Touching Fibonacci level of 61.8% of the upside rally from 0.7690 to the all-time high of 0.9800, where the royal pair met 38.2% Fibonacci level of the CD leg forced it to correct aggressively during the previous week. Our captured bullish butterfly pattern is still in favor and it could continue pushing the pair to the upside during this week as AROON down shows how the negative pressure decreased. We need a breakout accompanied by daily closing above 0.8380 zones to confirm the proposed positive harmonic scenario.
The trading range for this week is among the key support at 0.8180 and key resistance now at 0.8550.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
Support0.83350.82950.82550.82050.8180Resistance0.83800.84000.84700.85000.8550RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.8380 targeting 0.8550 and stop loss below 0.8245 might be appropriate.