Weekly Report 23/08 -27/ 08 / 2010

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Another bullish harmonic butterfly with an ideal XA correction at 76.4% has been formed successfully on the four-hour chart for the royal pair. Presently, the Fibonacci level of 161.8% projection for BC leg resides around the present levels that match 127% of XA; therefore, possible ascending movements could be seen during this week, supported by the clear oversold sign appearing on Stochastic.

The trading range for this week is among the key support at 0.7995 and key resistance now at 0.8320.

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

Support0.81400.81050.80850.80600.7995
Resistance0.81800.82050.82350.82550.8295
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8135 targeting 0.8255 and stop loss below 0.8060 might be appropriate.