Weekly Report(19-23 Dec 2011)
Today, having a wider view for the royal pair, trying to explain why it stopped at the 0.8370 support since Wednesday, where we can clearly see the ascending support which carried price starting from 0.7700 areas and October 2008. Accordingly, the current areas form a strong and critical support for the short term direction, breaching this area may lead to a change of the medium term trend to bearishness. The 50 EMA is supporting more downside movement, while momentum indicators are providing oversold signals adding strength to the current support area. Accordingly, we recommend staying aside and monitor daily closing around 0.8370 support and 0.8480 resistance.
The trading range for today is expected among the key support at 0.8200 and the key resistance at 0.8550.
The short term trend is to the upside as far as 0.8480 remains intact with targets at 1.0370.
|Recommendation||Based on the charts and explanations above we recommend staying aside awaiting more confirmations|