Weekly Report 05/12 -09/ 12/ 2011

Respecting our previous technical comment, the pair has soared touching 38.2% Fibonacci retracement of the upside wave from 75.50 to 79.50 where momentum indicators were taken to the overbought areas. Consequently, we believe that the pair may show some kind of correction to relieve momentum indicators before resuming the upside rally which is based on the bullishness appearing on the daily candlestick formation-secondary image-. SMA 100 and the recently added SMA 50 are carrying the bullishness as well. On the upside, a break back below 76.55 zones will give us a reason for concern.

The trading range for this week is among key support at 75.80 and key resistance now at 80.50.

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

Support77.6077.3077.1576.9576.55
Resistance78.1078.4579.1579.5580.00
RecommendationBased on the charts and explanations above our opinion is, buying the pair around 77.80 targeting 79.55 and stop loss below 76.65 might be appropriate.