Weekly Report 02/01 -06/01/ 2012
The pair was able to settle above the exponential moving averages 20 and 50, which support the recentlyestablished ascending channel. Stochastic approaches overbought areas, but at the same time it doesn't provide any negative crossover signs. Therefore, we expect an upside move this week. 4-hour closing below 0.9330 could trigger a downside wave and negate the upside move.
The trading range for this week is among the major support at 0.9045 and the major resistance at 0.9660.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
**New York Candlesticks**
|Recommendation||Based on the chart and explanations above, our opinion is buying the pair above 0.9375, and take profit in stages at (0.9415, 0.9560) and stop loss with 4-hour closing below 0.9335 might be appropriate. In case the pair reached our stop loss point our opinion is selling the pair around 0.9335 and take profit in stages at 0.9235 and 0.9110 and stop loss with 4-hour closing above 0.9400 might be appropriate.|