Weekly Report(27-30 Dec 2011)
The pair trades back below the pivotal level at 122.25 as shown above, where stochastic is pressuring intraday trading negatively which is halting the continuation of the bullish correction. In general, steady trading above the previously breached resistance of the descending channel supports a bullish move within this week, initially targeting 124.25. However, breaching below 120.75 will resume the overall bearish trend again.
The trading range for this week is expected among the key support at 119.30 and the key resistance at 124.25.
The short term trend is to the downside as far as 150.00 remains intact with targets at 112.00.
|Recommendation||Based on the charts and explanations above we recommend buying the pair with four-hour closing above 122.25 targeting 124.25 and 125.65 and stop loss below 120.75|