Weekly Report 21/03 -25/ 03/ 2011

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After Friday's violent inclines, the pair started to take some rest as we anticipated earlier. The entire inclines from Thursday's wick low took the pair towards 76.4% Fibonacci retracement of CD leg of the bullish harmonic structure; whilst the candlestick formation and technical indicators are still positive. Consequently, we believe that the pair will be able to build a base between 61.8% at 130.25 and 132.15 to move higher towards the next extended technical objective of the pattern at 100% or rather the full correctional level of CD leg at 135.20 and a break of which will send the pair higher towards 127.2% Fibonacci projection but let us take it step by step.

The trading range for this week is among key support at 125.50 and key resistance at 138.55.

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

Support130.50129.25128.00126.70125.50
Resistance132.50133.65134.80135.50136.80
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 130.50 targeting 135.25 and stop loss above 126.90 might be appropriate.