Weekly Report (24-28 October 2011)

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Although the pair ended the day negatively on Friday, the week ended above the resistance of the descending correctional channel shown on image, in addition to positivity on stochastic. We think that a bullish move is possible for this week, two conditions are required to acquire the move; a breach above 0.8700 and 0.8720 and steady trading above 0.8635.

The trading range for the week may be among the 0.8530 support and 0.9000 resistance.

The short term trend is to the upside targeting 1.0370 so long as 0.8165 remain intact

Previous Report

Support0.86850.86350.85900.85300.8500
Resistance0.87200.88050.88450.89100.9000
RecommendationBased on the charts and explanations above we recommend buying the pair with a breach above 0.8720 targeting 0.8910 and stop loss below 0.8635 may be appropriate.