Weekly Report 27/12 -30/ 12/ 2011

The pair is still trapped between the resistance line which forced RSI 14 to move downwards as we anticipated in our previous report. The support line which carries the movements from 76.50 zones meets SMA 100 as seen on the provided four-hour chart. We believe that the current healthy correction might be ended sooner once RSI enters the oversold areas. Anyway, our bullish predictions are still intact; whilst a break of 78.30 will confirm them. Conversely, areas of 76.60 should hold to protect the scenario.

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 upsidetargeting 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 77.80 targeting 79.55 and stop loss below 76.60 might be appropriate.