Weekly Report 03/10 -07/ 10/ 2011

In line with our Friday's reports, the pair succeeded in clearing the initial resistance of 76.95 as seen on the main four-hour chart. This technical breakout has assisted it to achieve a positive daily closing above SMA 50 over daily studies-secondary image- and thus, the suggested Elliott count for the short term price behaviors from 80.20 areas might have been activated as well. Consequently, we may witness bullish direction during this week, but nit before relieving Stochastic indicator. A breakout above 77.20 zones will ease the path towards 78.45-78.80 zones; whilst penetrating 75.80 areas will damage our positive scenario.

The trading range for this week is among key support at 75.25 and key resistance now at 79.55.

The general trend over short term basis is to the upside, targeting 87.45 as far as areas of 75.20 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 76.70 targeting 78.80 and stop loss below 75.80 might be appropriate.