Weekly Report (05-09 Dec 2011)


After breaching the descending channel shown above, the pair headed to the upside testing the 50-days Moving average, however it failed to settle above it, and price retested the previously breached resistance which turned into support at 104.35 area. 104.35 is a neckline for a bullish technical pattern and stability above this level hints more bullishness initially towards the latest high again at 105.70

The trading range for the day week be among the 102.45 support and 108.20 resistance.

The short term trend is to the downside targeting 94.80 so long as 123.30 remain intact.

RecommendationBased on the charts and explanations above we recommend buying the pair with four-hour closing above 105.00 targeting 105.60 and 106.50, stop loss below 104.00 may be appropriate