Weekly Report 16/08 -20/ 08 / 2010
After reaching the scientific technical of the classical head and shoulders pattern over four-hour interval exactly at 0.8180 -We recommend reviewing the past week report-, the royal pair is showing the ability to form another classical patter on the daily basis, but this time it will be with a positive effect-secondary image-. Not only is that but there a potential positive divergence appearing on OsMA indicator. These factors should be added to the duplicated harmonic pattern, which still has upside targets to be reached as we will explain in our next reports. From here, we propose possible movements during this week as far as 0.8060 zones remain intact.
The trading range for this week is among the key support at 0.8000 and key resistance now at 0.8380.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 0.8180 targeting 0.8335 and stop loss below 0.8060 might be appropriate.|