Weekly Report 05/12 -09/ 12/ 2011
The pair declined sharply on Friday from areas above the resistance at 1.3515; however, areas above 78.6% Fibonacci correction at 1.3380 were able to stop the bearishness as shown above on the chart. Stochastic is positively biased, while the exponential moving averages 20 and 50 support the positivity, yet the pair should return above the exponential moving average 20 at 1.3425. In general, the falling wedge pattern is still valid, and could affect the pair positively as long as the pair is stable above 1.3270.
The trading range for this week is among the major support at 1.3000 and the major resistance at 1.3665.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair around 1.3380, and take profit in stages at (1.3490 and 1.3620) and stop loss below 1.3220 might be appropriate|