Weekly Report 12/03 -16/03/ 2012

Respecting our bullish scenario suggested on Friday, the pair soared from 50% Fibonacci retracement of the entire upside rally from 0.8565 to the significant high of 0.9590 forming a bullish engulfing candlestick pattern. We do have lots of positive catalysts over daily studies that argue us to keep our bullish scenario intact during this week as follows:

Friday's positive closing above SMA 100.

The positive closing above Ribbon studies -EMA 10 to 80- as seen on the secondary daily chart.

Parabolic SAR is positive carrying the bullishness as well.

Stochastic and RVI 14 are also positive reinforcing the upside trend.

The trading range for this week is among key support at 0.9000 and key resistance at 0.9590.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 0.9185 targeting 0.9400 and stop loss below 0.9010 might be appropriate.