Weekly Report 28/02 -04/ 03/ 2011
The royal pair started to decline mildly as seen on the provided four hour graph, where the harmonic possibility of forming the last leg -CD leg- of our previous captured 5-0 pattern increased. The pair is dominated by a fine Fibonacci rhythmic; while the alternation principle of harmonic studies offers the probability of visiting 61.8% of AB leg, followed by 76.4% retracement, at 0.8410,where the main target of our proposed bearishness exists. Meanwhile, 161.8% Fibonacci projection of AB leg at 0.8645 shouldn't be breached to keep this scenario valid. The daily candlestick formation-subsidiary image- solidifies our constructive overview.
The trading range for this week is among the key support at 0.8380 and key resistance now at 0.8700.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
Support0.85000.84600.84450.84200.8380Resistance0.85700.86050.86300.86650.8700RecommendationBased on the charts and explanations above our opinion is, selling the pair around 0.8550 targeting 0.8410 and stop loss above 0.8645 might be appropriate.