Weekly Report (29 August- 02 September 2011)
The pair is gradually approaching the pivotal awaited resistance around 0.8885, while stochastic is providing negativity that may hinder the awaited breach of the level. In general, the breach of the falling wedge which was followed by a successful retest of the formation in addition to stability among the main ascending channel and support from the 50 EMA, All support bullishness for this week targeting initially 0.9000 followed by 0.9150. However, the move requires two conditions, a breach and stability above 0.8885 and trading above 0.8740.
Trading range for the day is among the major support at 0.8680 and the major resistance at 0.9000.
The short term trend is to the upside targeting 1.0370 as long as 0.8165 remain intact.
|Recommendation||Based on the charts and explanations above we recommend buying the pair with four-hour closing above 0.8885 targeting 0.9150 and stop loss with four-hour closing below 0.8795 may be appropriate.|