Weekly Report 02/08 -06/ 08 / 2010
After re-testing the broken upper line of the minor descending channel, the pair soared as seen on the provided daily chart. Therefore, the proposed harmonic formation that we discussed in our previous report is still valid. It could continue forming the CD leg rally of the harmonic AB=CD pattern and consequently, we believe that the bullishness might dominate the movements over the coming week,. We recommend reviewing the previous report.
The trading range for this week is among key support at 140.00 and key resistance at 130.50.
The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.
Support134.80134.25133.60133.15132.50Resistance136.20136.80137.30138.60139.85RecommendationBased on the charts and explanations above our opinion is, buying the pair around 135.50 targeting 139.80 and stop loss below 133.15 might be appropriate.