Weekly Report 02/01 -06/01/ 2012
The decline seen last week was limited in areas above the main ascending support as shown above, where the pair closed all the sessions in New York above 38.2% Fibonacci correction at 1.0185. This signals that the pair is forming a symmetrical triangle and suggests another bullish attempt this week. Stochastic is still negative, while the Relative Strength Index is trading below the 50-point level. Therefore, we are waiting for a daily closing above 1.0275 to confirm the return of the upside move.
The trading range for this week is among the major support at 1.0000 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 1.0365) and stop loss with 4-hour closing below 1.0070 might be appropriate|