Weekly Report 25-29/01/2010

The pair managed to breach the 1.0410 to the upside which provided confirmations for the strength of the set bottom at 1.0222 and therefore the pair started a bullish move over intraday basis. We can present an expected scenario for the upside move, starting with a downside correction torelieve momentum indicatorsand then resuming the expected upside move for this week which initially targets 1.0780 and then 1.0870. Our bullish expectations require steady daily closing above 1.0370.

The trading range for the week is among the major support at 1.0220 and the major resistance at 1.0870.

The general trend is to the downside as far as 1.1870 is intact with targets at 1.0000.

Previous day Report

RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.0455 targeting 1.0645 and stop loss below 1.0315, might be appropriate this week