Weekly Report 05/07 -09/ 07 / 2010

The mixture between Elliott count and classical studies proves that the pair found solid support levels around 107.25 zones, where a double bottom formation was formed and a new IM wave started. Therefore, a slight correction might occur before resuming the potential bullish rally, targeting 161.8% of the suggested third wave at 112.80 zones.

Notes:

1- The recently established bullish channel will dominate the movements

2-SMA 50 might carry the bullish trend from below.

The trading range for this week is among key support at 106.90 and key resistance now at 113.60.

The general trend over short term basis is to the downside, targeting 97.90 as far as areas of 132.50 remain intact.

Previous Report

Support109.45108.50108.00107.25106.90Resistance110.50111.35112.10112.80113.60RecommendationBased on the charts and explanations above our opinion is, buying the pair around 109.60 targeting 112.80 and stop loss below 107.25 might be appropriate.