Weekly Report 16/04 -20/04/ 2012

In accordance with our previous suggested Elliott sequence, the pair has soared clearing the initial resistance level of 0.9175-turned into support- as seen on the provided four-hour graph. Now, we may witness potential downside recovery for the violent upside movements seen on Friday which classified as an internal correctional wave before resuming the bullishness of the bigger third wave. A break above 0.9335 will encourage bulls to support their long positions over short term basis; whilst coming below 0.9080 will make us reconsider our suggested count.

The trading range for this week is among key support at 0.9030 and key resistance at 0.9500.

The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.9200 targeting 0.9470 and stop loss below 0.9030 might be appropriate.