Weekly Report 23/01 -27/01/ 2012
Over daily studies, the pair is facing very critical situation that encourage us to stay aside since it has inclined during the past week but SMA 50 is presently retested while Stochastic is on its way to overlap. Over four-hour interval we can see more negative signs that added more sensitivity to the current levels as Stochastic and RSI 14 are reflecting a pure overbought case while traders are facing 76.4% Fibonacci retracement of the downside wave from 1.5665 to the significant low of 1.5230. In the interim, Parabolic SAR is carrying the movements from below; thus, the above discussed contradictions between signs over various time frames makes it rational to avoid trading until we see how the pair will behave around the current levels.
The trading range for this week is among key support at 1.5230 and key resistance at 1.5820.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, staying aside until an actionable set up presents itself to pinpoint the upcoming big move.|