Weekly Report 06/12 -10/ 12/ 2010

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Classically speaking, the royal pair succeeded in breaching the downtrend line that ceiled the bearish wave from 0.8940 zones as seen on the provided four hour chart. It also succeeded to stabilize above SMA 50, clarifying a change for the bearish trend and thereby, we believe that the bullishness will dominate the movements during this week. Something that should be considerably noted, it is the probability of forming the right shoulder of a reversal classical pattern as momentum indicator needs further relief before attempting to breach the neckline of this pattern around 0.8510. The technical target of this proposed scenario resides around 0.8680 areas.

The trading range for this week is among the key support at 0.8295 and key resistance now at 0.8730.

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

Support0.84450.83900.83550.83250.8295
Resistance0.85500.85850.86300.86800.8700
RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.8510 targeting 0.8680 and stop loss below 0.8370 might be appropriate.