Weekly Report 14/11 -18/ 11/ 2011

In line with our previous report, the pair moved mildly downwards where it is currently hovering around SMA 100 as seen on the provided four-hour graph. We can see that SMA 100 meeting the initial support of 77.05-61.8% Fibonacci retracement of the entire upside wave from 75.50 to 79.50 zones- while RSI 14 becomes ready to achieve a bullish sign. At the same time, the probability of drawing a potential positive divergence on Stochastic increased; thus, we look forward to witness an upside rally resumption for the wave started at 75.50 since we classify the setbacks from 79.50 as a correction.

The trading range for this week is among key support at 76.10 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 77.05 targeting 78.80 and stop loss below 76.10 might be appropriate.