Weekly Report (05-09 Dec 2011)

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The pair continues to trade with narrow ranges, below the 50-days Moving average. Recently, price managed to breach a short term descending resistance shown above, we may witness a retest of the area around the moving average and 0.8660 horizontal resistance, but the overall range-trading stance is expected to continue so long as 0.8660 remains intact to the upside and 0.8525 to the downside.

The trading range for the week may be among the 0.8460 support and 0.8765 resistance.

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

Previous Report

Support0.85600.85250.84850.84500.84.00
Resistance0.86150.86400.86600.87000.8725
RecommendationBased on the charts and explanations above we recommend selling the pair around 0.8650 targeting 0.8600 and 0.8550 ,stop loss with four-hour closing above 0.8665 may be appropriate