Weekly Report 15/08 -19/ 08/ 2011

The last three consecutive daily closing above the pivotal level of 76.75, accompanied by the long wicks for those candlesticks suggest that the pair is finding a strong support above the recorded low of 76.25. Moreover, the probability of forming a positive divergence on RSI 14 increased, but it will not be confirmed unless the pair breaches through 77.40 zones. Meanwhile, areas of 76.25-76.00 should protect the classical bullish outlook.

The trading range for this week is among key support at 74.25 and key resistance now at 80.95.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 76.40 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair above 77.40 targeting 79.55 and stop loss below 76.00 might be appropriate.