Weekly Report 16/01 -20/01/ 2012

The pair continued consolidating between 61.8% and 76.4% Fibonacci levels of the entire upside wave from 75.50 to 79.50 zones as seen on the provided daily chart. Momentum and trend indicators are presently reflecting a technical case of hesitation; noting that areas of 77.10 act as ceiling; whilst 76.50 should be the protection for bulls. To recap, we hold onto our neutral stance until the pair breaches through one of the above mentioned levels over upcoming sessions.

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

Support76.6076.4076.1076.0075.80
Resistance77.1077.5577.9078.3078.45
RecommendationBased on the charts and explanations above our opinion is, staying aside as risk versus reward ratio is too high today.