Weekly Report 23/08 -27/ 08 / 2010

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The pair is presently building a technical base around the potential reversal zones of our suggested duplicated harmonic pattern as seen on the provided four-hour chart. These levels represent the combination of Fibonacci 127.2% of XA and 261.8% of BC. We see chances for achieving potential upside actions during this week,where there are two technical factors that could assist the pair to incline as follows:

1-Bullish candlestick formation was formed already.

2-Stochastic is very close to the oversold areas and might reverse at sooner.

The trading range for this week is among key support at 105.90 and key resistance now at 111.60.

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

Support108.00107.60107.25106.85106.50
Resistance109.00109.50110.00110.50111.60
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 108.50 targeting 110.80 and stop loss below 107.00 might be appropriate.