Weekly Report(12-16 Dec 2011)
Trading remain stuck among the narrow range shown on image between 121.00 support and 122.25 resistance, while the 50 EMA continues to pressure the pair negatively while stochastic is approaching oversold areas. Accordingly, we will anticipate a breach of the aforementioned levels to expect the upcoming intraday move, where breaching 121.00 will lead to a decline testing 119.30 followed by 117.95, while breaching 122.25 to the upside will open the door towards further upside correction targeting 125.65.
The trading range for the week may be among the 119.95 support and 125.65 resistance.
The short term trend is to the downside targeting 122.00 so long as 150.00 remain intact.
|Recommendation||Based on the charts and explanations above we recommend buying the pair with a breach above 122.25 targeting 124.00 and stop loss below 121.00 OR selling the pair with a breach below 121.00 targeting 119.30 and stop loss above 122.25 may be appropriate|