Weekly Report 30/08 -03/ 09/ 2010

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The pair has been capable of forming an ideal harmonic cycle as seen on the provided daily chart. This harmonic Crab formation has started at 107.30 and we see how the sharp bounce occurred exactly from 127% of XA has activated a positive divergence which also met 423% of BC leg. Thereby, potential upside movements could be witnessed during this week, particularly if it succeeded in breaching 108.85 zones.

The trading range for this week is among key support at 105.30 and key resistance now at 112.80.

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

Support107.75107.05106.50105.90105.30
Resistance108.50109.00109.45110.00110.50
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 107.75 targeting 110.40 and stop loss below 105.80 might be appropriate.