Weekly Report 19/09 -23/ 09/ 2011

The pair started to achieve stability above SMA 20 as seen on the provided four hour graph, attempting to hit the initial resistance of 76.95 zones. All we need is a sustained breakout above 77.20 to assist the pair to move higher once more to complete the suggested Elliott sequence. Moreover, we can see the potential head and shoulders bottom pattern which took a long time to be formed; thus, it may cause a price explosion to the upside and that will match the IM -impulsive- nature of C wave. Carefully note that thebullishclassical pattern will be valid as far as areas of 75.90-75.80 remain intact.

The trading range for this week is among key support at 75.25 and key resistance now at 80.05.

The general trend over short term basis is to the upsidetargeting 87.45 as far as areas of 75.20 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair above 77.20 targeting 79.10 and stop loss below 75.80 might be appropriate.