Weekly Report 15 - 19 / February / 2010

The pair strongly dropped last week as bearish correction for the last bullish wave, which represents the completion of the right shoulder of the inverse head & shoulder pattern, shown in the daily chart. This pattern's formation makes us expect a bullish trend for this week; targeting the neckline at 1.0785 then 1.0960. Keep in mind that achieving the daily close below 1.0410 will make expectations for the awaited bullish direction fail.

The trading range for today is among the key support at 1.0300 and the key resistance at 1.0960.

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

Previous Report

Support1.04951.04101.03551.02701.0220
Resistance1.05601.06451.07001.07851.0865
RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.0410 targeting 1.0625 and stop loss below 1.0270, might be appropriate.