Weekly Report 23/01 -27/01/ 2012

The pair has found a very good support above 76.4% Fibonacci retracement of the entire upside rally from 75.50 to 79.50 as seen on the provided daily graph. The positivity appearing on Vortex and Stochastic indicators could assist the pair to move higher during this week. A break above 77.10 will accelerate inclines towards 77.70; whilst taking 78.00 will be a very positive indication for short term traders to retest 79.50 zones. On the downside, clearing 76.50 will give us a reason for pause and breaching 75.80 will bring panic selling pressures.

The trading range for this week is among key support at 75.50 and key resistance now at 79.00.

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 76.90 targeting 78.45 and stop loss below 75.80 might be appropriate.