Weekly Report 12/09 -16/ 09/ 2011
The pair rebounded sharply to the upside reaching now around the psychological barrier at 1.0000, however a breach of this level could support the pair to test the level of 1.0090, which represents 127.2% Fibonacci correction of the downside movement which started at 1.0008 and ended at 0.9725. The upside move is still valid for this week, while a breach of the several resistances between 1.0010 and 1.0090 should support the pair to test the level of 1.0185, but a failure should trigger a downside correction.
The trading range for this week is among the major support at 0.9710 and the major resistance at 1.0260
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair above 0.9950, and take profit in stages at (1.0090 and 1.0185) and stop loss with 4-hour closing below 0.9830 might be appropriate.|