Weekly Report 14/03 -18/ 03/ 2011
The achieved gap took the royal pair towards the previous week detected technical objective exactly at 0.8670 zones, where Fibonacci projection of the CD leg for our efficient bullish harmonic 5-0 pattern exists. As we discussed earlier, the pattern always send the price towards the extended technical targets; whilst the weekly chart -secondary image- shows clear bullish signs and thus, we believe that the pair will cover the gap and to relieve RSI before resuming the projected bullishness towards 261.8% Fibonacci projection of CD leg at 0.8815 areas.
The trading range for this week is among the key support at 0.8425 and key resistance now at 0.8875.
The general trend over short term basis is to the downside, targeting 0.7780 as far as areas of 0.8965 remain intact.
Support0.86600.86200.85800.85250.8490Resistance0.87000.87300.87800.88150.8875RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.8620 targeting 0.8810 and stop loss below 0.8490 might be appropriate.