Weekly Report 07/11 -11/ 11/ 2011

The paircontinued its consolidation above the previous broken initial resistance of 123.30-turnde into support- as seen on the provided daily chart. The bullish recovery from 116.80 has been capable of drawing one of the most accurate Bulkowski's patterns whichwas published in his book Encyclopedia of Chart Patterns, Second Edition. It is known as Bulkowski's Horn Bottoms. The distance between the bottoms to the neckline is added to the breakout areas to calculate the technical target. Of note, we may witness some kind of retrace to relieve momentum indicators before resuming the bullish rally expected for this week. Ultimately,a break of 122.00 will negate the outlook.

The trading range for this week is among key support at 120.00 and key resistance at 129.90.

The short term trend is to the downside targeting 122.00 so long as 150.00 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 124.45 targeting 128.40 and stop loss below 122.00 might be appropriate.