Weekly Report08 -12 / February / 2010

The pairas seen in the image above is movingwithin the same overall bearish direction. At the same time we find that the pair was not able to achieve any daily close below 61.8% correctional level - for the bullish correctional wave that started from the 4th of March 2009 and ended on the 26th of October 2009 - that is at 1.3485. Chances of achieving a bullish correctional trend remain intact for this week to complete the suggested scenario in last week's report and form a bullish trend. The stability if trading above MA 20 increases insurances regarding the bullish direction. In order for the bullish correctional wave to prevail requires the breach of 1.3815; whereas the ADX indicatoris giving off signs of a bullish direction; meanwhile the RSI is showing a bullish trend; the stochastic, however, stabilized above 50 with some slant in order to complete several bearish corrections.

The trading range for today is among the key support at 1.3200 and the key resistance at 1.3960.

The general trend is to the upside if we do not witness a daily close below 1.3480 with targets at 1.6000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.3650 targeting 1.3960 and stop loss below 1.3425, might be appropriate.