Weekly Report 06/02 -10/02/ 2012

One more positive closing above SMA 100 was achievedand now, the pair is hitting the middle line of Keltner channel suggesting that the bullishness will continue during this week. Moreover, Stochastic and RVI 14 are currently positive reinforcing our scenario. Ultimately, a breakout above 0.9225 will accelerate inclines as this level represents a neckline for a potential reversal classical pattern on the four-hour timescale. Conversely, areas of 0.9030 should hold to protect the positive scenario.

The trading range for this week is among key support at 0.8890 and key resistance at 0.9550.

The general trend over short term basis is to the upside, targeting 0.9950 as far as areas of 0.8850 areas remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.9175 targeting 0.9400 and stop loss below 0.9030 might be appropriate.