Weekly Report 27/12 -30/ 12/ 2011

The pair is stable above the critical support levels between 0.9310 and 0.9330 while the MA 50 continues to offer support for the pair from below. Therefore, we hold onto our expectations for the pair to resume the upside move this week as the positive formation over daily basis supports the bullishness towards previously suggested targets from 0.9490 to 0.9660. The positive expectations require first the clear breach of 0.9400 and also steady daily closing above 0.9310.

The trading range for this week is among the major support at 0.9180 and the major resistance at 0.9775.

The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.

Previous Report

RecommendationBased on the charts and explanations above we recommend buying the pair around 0.9330 targeting 0.9490, 0.9590 and 0.9660 and stop loss below 0.9235 might be appropriate this week