Weekly Report 12/12 -16/ 12/ 2011
The pair was able to settle above 1.0185, but Stochastic attempts to provide a negative crossover, while the Relative Strength Index is stable below the 50-point level. The upside move is still available, but to negate the negativity seen on momentum indicators, the pair should settle above the Exponential Moving Average 20 and 50 and also above 50% Fibonacci correction at 1.0275. Therefore, we expect an upside move today, but consolidation above the mentioned level is required to confirm our outlook.
The trading range for this week is among the major support at 0.9865 and the major resistance at 1.0570.
The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.
**New York Candlesticks**
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair around 1.0185, and take profit in stages at (1.0275 and 1.0375) and stop loss with 4-hour closing below 1.0070 might be appropriate|