Weekly Report 24/10 -28/ 10/ 2011
The previous detected pivotal support of 75.80 prevented the pair from collapse pushing the pair inside the sideways range trading areas. According to the classical rules, we should buy on dips of this trading range as these areas should act as strong support, but stability below SMA 20 and SMA 50 combination with a four-hour closing prevents us from obeying the rules. Furthermore, the first support below 75.80 resides around 74.50 due to using Fibonacci expansion tool as seen on the graph. From here, we preferstaying aside until the pair elucidates if it will clear the support of 75.80 or will move towards the upper line of the sideways range.
The trading range for this week is among key support at 75.20 and key resistance now at 78.45.
The general trend over short term basis is to the upsidetargeting 87.45 as far as areas of 75.20 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, staying aside until an actionable technical setup presents itself to pinpoint the next big move.|