Weekly Report (17-21 October 2011)

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The pair rallied to surpass the resistance of the descending channel shown on image, the breach hints the continuing effect of the bullish pattern which was completed by a breach of 120.80. Last week closing above the resistance which turned into support at 121.80 supports an upside move for the week, taking into consideration that a daily closing below this level will push us to reconsider the next possible move.

The trading range for the week may be among the 120.30 support and 124.35 resistance.

The short term trend is to the downside targeting 122.00 so long as 150.00 remain intact.

Previous Report

Support121.80121.30120.80120.35120.00
Resistance121.95122.40123.35124.00124.65
RecommendationBased on the charts and explanations above we recommend buying the pair around 121.80 targeting 124.35 and stop loss below 120.80 may be appropriate.