Weekly Report13/12 -17/ 12/ 2010

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Resuming the classical series for the royal pair, we see how the pair was retesting the previous broken downtrend line during the previous week. This technical process succeeded to create a falling wedge pattern- continuation pattern for the upside move from 0.8325 to 0.8520-. Thereby, the bullishness will be in favor during this week, particularly if it succeeded to beach the pivotal resistance areas between 0.8380-0.8400. RSI 14 offers a positive divergence probability and at the same time, Stochastic approaches oversold areas, supporting our bullish scenario.

The trading range for this week is among the key support at 0.8140 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.

Previous Report

Support0.83300.82950.82600.82100.8180
Resistance0.83900.84450.84800.85000.8550
RecommendationBased on the charts and explanations above our opinion is, buying the pair with a breakout above 0.8380 targeting 0.8510 and stop loss below 0.8275 might be appropriate.