Weekly Report 02/01 -06/01/ 2012

With the start of this year, the pair is still stable below the critical resistance of the downsidechannel and also below the exponential moving averages 20 and 50. In addition, Stochastic is still negative, which drives us to expect that the pair could provide another bearish attempt this week. Consolidation below 1.3120 is necessary, while stability below the resistance at 1.3000 is required for our negative expectations to prevail.

The trading range for this week is among the major support at 1.2740 and the major resistance at 1.3270.

The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135

**New York Candlesticks**

Previous Report

RecommendationBased on the charts and explanations above, our opinion is selling the pair below 1.3000, and take profit in stages at (1.2910 and 1.2845) and stop loss with 4-hour closing above 1.3080 might be appropriate