Weekly Report 06/02 -10/02/ 2012

After dropping on Friday to breach the support of the falling wedge formation shown on image, price rebounded again with the start of the week to trade within the formation, while MACD continues to provide a bullish divergence. We expected a rebound from 0.9950 levels on Friday, and we continue to hold onto our expectation for an upside correction this week as well, targeting initially the main resistance area below 1.0075. 0.9890 should remain intact for the bullish correction to remain valid.

The trading range for today is expected among the major support at 0.9890 and the major resistance at 1.0075.

The short term trend is to the upside targeting 1.0650 with steady daily closing above 0.9900.

Previous Report

Support0.99500.99250.98900.98700.9850
Resistance0.99600.99801.00101.00501.0075
RecommendationBased on the charts and explanations above, we recommend buying the pair around 0.9930 targeting 1.0040 and 1.0075, stop loss below 0.9875.