Weekly Report 07/03 -11/ 03/ 2011
In our previous reports, we discussed the harmonic structure of the 5-0 pattern, which respected the scientific rule of forming the PRZ at 50% Fibonacci retracement of CD leg. We are still waiting to witness some kind of relief for RSI 14 as a representative for momentum indicators, where 0.8550 zones could be the level, where the pair may achieve more upside actions during this week. The technical target of this harmonic formation resides at 161.8% Fibonacci projection of CD leg at 0.8670 and a break of which will send the royal pair higher towards the extended technical objectives at 0.8810, where 261.8% of the same leg exists. The candlestick formation over weekly basis-secondary image- solidifies our harmonic outlook.
The trading range for this week is among the key support at 0.8425 and key resistance now at 0.8770.
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 0.8550 targeting 0.8770, followed by 0.8810 and stop loss below 0.0.8445 might be appropriate.|