Weekly Report 04/04 -08/ 04/ 2011
The royal pair succeeded in achieving a weekly closing above 0.8815 zones, where Fibonacci projection level of 261.8% of our previous discussed bullish harmonic 5-0 pattern; hence,the bullishness is still in favorduring this week, targeting 361.8% Fibonacci at 0.8950-0.8960.We should note that a break of these areas might change the short and may be the medium term basis. The efficient bullish scenario is still classically protected by the upside channel that organizes achieving the extended technical targets of the harmonic pattern .The negative divergence may take the royal pair towards 0.8760 zones to retest the support of our captured channel. SMA 50 is carrying the royal pair from below as well.
The trading range for this week is among the key support at 0.8605 and key resistance now at 0.9070.
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 0.8760 targeting 0.8960 and stop loss below 0.8605 might be appropriate.|