Weekly Report (10-14 October 2011)
The pair continues trading positively to settle above the 50 EMA, moving away from the latest bottom at 116.95, thus strengthen the possibilities of heading toward the resistance of the main descending channel as shown on image. Therefore, we expect the upside bias to continue toward the aforementioned target,however we may witness some fluctuation affected by negativity on stochastic and the 120.80 resistance. Breaching 118.10 shall invalidate the suggested bullish scenario to resume the overall downside trend.
The expected trading range for the week is among the key support at 116.95 and the key resistance at 122.40.
The short term trend is to the downside so far as 150.00 remains intact targeting 112.00.
|Recommendation||Based on the charts and explanations above we recommend buying the pair around 119.10 targeting 122.40 and stop loss below 118.10 may be appropriate.|