Weekly Report 30/08 -03/ 09/ 2010

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Passing over 61.8% Fibonacci level of CD leg for the bullish harmonic butterfly pattern has opened the door for achieving a full correctional action towards 134.60, which represents one of the extreme targets of the aforesaid pattern. Stochastic might be relieved before resuming the upside rally inside our captured upside channel. Henceforth, we believe that the bullishness might control the movements during this week.

The trading range for this week is among key support at 127.80 and key resistance at 137.30.

The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.

Previous Report

Support131.65130.50129.80129.25128.75
Resistance132.50133.15133.60134.80135.50
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 131.65 targeting 134.80 and stop loss below 129.80 might be appropriate.