Weekly Report (17-21 October 2011)
A similar scenario for the pair, which settled above the descending channel which was controlling the pairs movement since July. This breach hints that a potential bullish correction may occur this week. Targeting mainly 109.30, taking into consideration that stability below 106.65 will push the pair to trade again within the main down trend.
The trading range for the week may be among the 104.95 support and 109.30 resistance.
The short term trend is to the downside targeting 94.80 so long as 123.30 remain intact.
|Recommendation||Based on the charts and explanations above we recommend buying the pair around 106.65 targeting 109.30. Stop loss with four-hour closing below 105.85 may be appropriate.|