Weekly Report 09/01 -13/01/ 2012

The pair started to consolidate again between 61.8% and 76.4% Fibonacci retracement levels of the entire upside wave from 75.50 to 79.50 as seen on the provided daily chart. But, Stochastic over daily studies is still positive; whilst the four-hour time scale shows that a bullish candlestick formation and bullish crossover on Stochastic were formed during the Asian session suggesting a potential resumption for the recovery started above 76.50 zones. Actually, we need to witness a breakout along with stability above 77.10 areas to confirm the bullishness anticipated during this week; noting that, taking 77.55 will fix the sign appearing onVortex indicator.

The trading range for this week is among key support at 75.50 and key resistance now at 78.30.

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 above 77.10 targeting 79.00 and stop loss below 75.80 might be appropriate.