Weekly Report 22-26 / March / 2010

By observing the daily chart above and using the harmonic technical pattern, we see that the pair has currently stabilized on 50% of the CD leg pattern for the harmonic technical pattern shown above. Trading has returned to above the MA 20 and might retest the 23.6% correction level at 1.0695 then 1.0720 in a row. We will not rule out retesting levels around vital resistance at 1.0835. The expected bullish direction for this week will prevail is trading remains above the MA 50 and weekly closing.

The trading range for today is among the key support at 1.0360 and the key resistance at 1.0880.

The general trend is to the upside if we do not witness a daily close below 1.1225 with targets at 0.9600.

Previous Report

Support1.06001.05201.04951.04351.0360
Resistance1.06951.07201.07901.08351.0880
RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.0600 targeting 1.0835 and stop loss below 1.0500, might be appropriate.