Weekly Report 31/10 -04/ 11/ 2011
The pair has soared during the Asian session as seen on the provided daily graph. This aggressive inclines has activated a clear bullish sign on Stochastic and Vortex indicators, claiming that 100% Fibonacci expansion level was very solid enough to push the pair higher without neglecting the role that BOJ played. Focus is on 81.50 zones where a break of which will bring panic buying interests towards 85.50 areas. Let us follow this reversal; noting that 79.55 zones should be breached to confirm the bullishness. Conversely, areas of 76.95 should be the risk limit during this week.
The trading range for this week is among key support at 76.50 and key resistance now at 83.25.
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, buying the pair around 78.80 targeting 81.50 and stop loss below 76.90 might be appropriate.|