Weekly Report 12/12 -16/ 12/ 2011

The consolidation continued above 61.8% and 50% Fibonacci levels of the upside rally from 75.50 to 79.50 as seen on the major four-hour graph. Additionally, SMA 100 succeeded in providing the pair with the support it needs during the Asian session; whilst Stochastic crossed over positively. The secondary image of the daily basis shows how trading has been trapped within a very tight range during the previous week, suggesting that a potential price explosion could be seen sooner. Stochastic of the daily studies solidifies the constructive bullish overview, while a break of 77.80-77.90 will accelerate the awaited inclines.

The trading range for this week is among key support at 75.50 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 77.40 targeting 79.15 and stop loss below 76.65 might be appropriate.