Weekly Report January 31 / February 4 / 2011

The pair is moving to the upside touching the key descending channel's resistance level around 1.0020 currently, while the MA 50 with it adding further strength to this resistance. Stochastic is nearing overbought areas and thereby supporting trading continuing to trade within this bearish channel. Keep in mind that the daily closing must be below 1.0020 in order to maintain chances of resuming these expectations.

The trading range for today is among the key support at 0.9700 and the key resistance at 1.0115.

The short term trend is to the upside as far as 1.0665 remains intact with targets at 0.9000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.0020 targeting 0.9815 and stop loss above 1.0115, might be appropriate.