Weekly Report 17-21/10/ 2011

Although the pair has closed very positively on Friday above the combination of SMA 20 and SMA 50 as seen on the provided daily graph, but we need more confirmation to turn short term bias bullish. We will get this confirmation once the pair breaches through 77.70 to get ride of two month range from 75.90 to 77.70. Anyway, we will depend on the breakout above the aforementioned moving averages and the positivity on Vortex indicator to suggest a retest of 77.70 first and a break of which will be a very good buying opportunity for short term traders.

The trading range for this week is among key support at 75.80 and key resistance now at 79.55.

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

Previous Report

Support76.9576.4076.1075.8075.60
Resistance77.7077.9078.4578.9079.55
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 76.95 targeting 79.00 and stop loss below 75.80 might be appropriate.