Weekly Report 19/03 -23/03/ 2012

The negative divergence and the solidity of the key resistance level of 0.9310 have sent the pair lower below 38.2% Fibonacci retracement of the entire upside wave from 0.8565 to 0.9590 zones as seen on the provided daily chart. We will depend on the lower line of Keltner channel and the strength of the support previously breached at 0.9105 to suggest an upside wave during this week. A break above 0.9200 is required to confirm resuming the bullishness started at 61.8% Fibonacci level. On the downside, 0.8980-0.8960 should hold to keep the overview valid.

The trading range for this week is among key support at 0.8890 and key resistance at 0.9445.

The general trend over short term basis is to the upside, targeting 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 0.9105 targeting 0.9310 and stop loss below 0.8965 might be appropriate.