Weekly Report (10-14 October 2011)
The pair decline to end the week below the main support which turns into resistance at 0.8620 after the 50 EMA proved strength against the pair's upside attempts. Therefore, we expect a downside move for the week supported by negativity on stochastic over daily basis, targets start at 0.8530, and 0.8415, taking into consideration that a daily closing above 0.8620-0.8635 may delay acquiring the suggested downside move and push the pair to attempt to the upside again.
The expected trading range for the week is among the key support at 0.8415 and the key resistance at 0.8750.
The short term trend is to the upside so far as 0.8165 remains intact targeting 1.0370.
|Recommendation||Based on the charts and explanations above we recommend selling the pair around 0.8620 targeting 0.8415 and stop loss above 0.8720 may be appropriate|