Weekly Report (05-09 March 2012)

The pair starts the week under downside pressure, while a bearish divergence has materialized on momentum indicators in addition to the overbought stance, as shown on the chart. Thus as the pair has approached further key technical resistance levels at 82.25 we may see a downside correction this week , but we prefer to buy the pair on pullbacks not sell it on corrections.

The trading range for this week is expectedamong key support at 79.50 and key resistance now at 84.50.

The general trend over short term basis is to theupside targeting87.45as far as areas of75.20remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 80.00 targeting 81.65 and 84.00 stop loss below 79.00 might be appropriate.