Weekly Report(09-12 Jan 2012)

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Trading settled within a narrow range after breaching the pivotal support which turns into resistance at 0.8260 now, and this supports the continuation of the downside move this week, awaiting the main downside target at 0.8170 to be acquired which is the 50% Fibonacci correction for the whole bullish move from 0.6534 to 0.9802. The 50 EMA supports the downside bias, while breaching 0.8260 with daily closing may delay achieving the awaited move.

The trading range for the week is expected among the key support at 0.8000 and the key resistance at 0.8350.

The short term trend is to the upside as far as 0.8165 remains intact with targets at 1.0370.

Previous Report

Support0.82000.81700.81000.80650.8000
Resistance0.82600.83000.83500.83950.8440
RecommendationBased on the charts and explanations above we recommend buying the pair around 0.8260 targeting 0.8170 and 0.8100, stop loss with four-hour closing above 0.8350 may be appropriate.