Weekly Report (10-14 October 2011)

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The pair settles above 103.00 barrier, and this is a positive indication and suggests bullishness over the upcoming days. Stochastic is crossing over positively supporting a breach of 103.85-103.80 which will be the key toward 106.40 and 107.00. On the other hand, breaching 102.10 will be a strong sign that trading may resume within the main downside trend.

The expected trading range for the week is among the key support at 101.00 and the key resistance at 107.00.

The short term trend is to the upside so far as 123.30 remains intact targeting 94.80.

Previous Report

Support102.65102.10101.70101.00100.00
Resistance103.30103.85104.40105.10105.75
RecommendationBased on the charts and explanations above we recommend buying the pair with four-hour closing above 103.85 targeting 106.40. Stop loss below 102.65 may be appropriate.