Weekly Report 24/05 -28/ 05 / 2010
The pair has been dominated inside a descending IM wave from 122.30 zones as seen on the provided hourly chart. Now, the stable move above SMA 50 indicates that, a possible corrective A-B-C formation is in progress, particularly after breaching 23.6% Fibonacci level of the aforesaid wave. Thus; potential upside actions could be witnessed during this week.
The trading range for this week is among key support at 106.35 and key resistance now at 117.30.
The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.
Support112.00111.05110.40109.50108.45Resistance113.60114.35115.75116.00116.40RecommendationBased on the charts and explanations above our opinion is, buying the pair from 112.45 targeting 116.00 and stop loss below 110.00 might be appropriate.