Weekly Report 02/04 -06/04/ 2012

Our previous discussed zig zag (5-3-5) scenario of the reactionary waves started at 0.9335 is still in progress. Accordingly, this proposed count offers the probability of building a technical base to start the new IM-impulsive- wave. The risk versus reward ratio is very suitable to enter a long position with a stop loss at 0.8925 zones as moving below this level will invalidate our captured count; noting that RSI 14 is approaching the value of 30.00 reinforcing the bullish move suggested for this week.

The trading range for this week is among key support at 0.8780 and key resistance at 0.9300.

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 0.9000 targeting 0.9175 and stop loss below 0.8925 might be appropriate.