Weekly Report 28/11 -02/ 12/ 2011
In line with our Friday's analysis, the pair has soared, breaching 50% Fibonacci retracement of the aggressive upside rally from 75.50 to 79.50 as seen on the provided four-hour chart. This breakout has activated stability above SMA 100 but the overbought signs started to appear on momentum indicators -RSI and Stochastic- and thus, we believe that the pair will move mildly downwards to relieve indicators before resuming the upside rally. The secondary image of the weekly basis shows that the previous week's candlestick was definitely bullish and that solidifies our constructive bullish outlook over short term basis. Ultimately, a break of 77.90 will accelerate inclines.
The trading range for this week is among key support at 75.50 and key resistance now at 80.00.
The general trend over short term basis is to the upside, targeting 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 77.30 targeting 79.55 and stop loss below 76.10 might be appropriate.|