Weekly Report 23/01 -27/01/ 2012

As shown above on the chart,the pair is currently stable within areas around a previous minor top around the support level at 1.2875 and also around the simple moving average 20. However, the pair is presently trading outside the scope of the downside movement that was breached last week. All these factors suggests that the pair could extend the upside move, targeting areas around 1.3035 at least and then areas around 1.3135, but we don't expect reaching areas beyond 1.3195-1.3200 within the current bullish wave. Consolidation above 1.2795 is required for the suggested upside move to remain valid, while a breach of 1.2730 is sufficient to negate our expectations over intraday basis.

The trading range for this week is among the major support at 1.2685 and the major resistance at 1.3200.

The short-term trend is to the downside with steady daily closing below 1.3145 targeting 1.2220.

**New York Candlesticks**

Previous Report

Support1.28751.28451.27951.27351.2685
Resistance1.29101.29551.30001.30351.3080
RecommendationBased on the charts and explanations above, our opinion is buying the pair above 1.2875, and taking profit in stages at (1.3035 and 1.3135) and stop loss with 4-hour closing below 1.2730 might be appropriate