Weekly Report 07/11 -11/ 11/ 2011

The pair is stable above the ascending support level shown in red, which drive us to expect an upside move this week, where we recognize a possible bullish technical structure supported by the positive crossover seen between the Exponential Moving Averages 20 and 50, while 61.8% Fibonacci correction supported this structure to be formed. The suggested upside movement depends on stability above 0.9970 in general, while consolidation above 1.0140 is much better.

The trading range for this week is among the major support at 0.9700 and the major resistance at 1.0475.

The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.

Previous Report

RecommendationBased on the charts and explanations above, we recommend buying the pair around 1.0140, and take profit in stages at (1.0255 and 1.0305) and stop loss below 1.0000 might be appropriate.