Weekly Report 6 - 10 / December / 2010

The pair was near to achieving the suggested targets in our reports last week around 1.2915, after the pair strongly rebounded to return to trade once again within the key ascending channel to stabilize above the MA 50, alongside building a base above 50% Fibonacci correction. The chart above highlights what had occurred. Momentum indicators are currently giving off negative signs that will maintain mixed fluctuation for some time, in addition to retesting critical levels for the short term intraday direction, starting from 1.3345 then 1.3290 - retesting the downside channel that was picked out last Friday -. In overall, we expect a bullish intraday direction that requires the daily closing above 1.3265 to prevail and where targets start at 1.3685.

The trading range for today is among the key support at 1.3185 and the key resistance at 1.3685.

The short term trend is to the upside as far as 1.2795 remains intact with targets at 1.5135.

Previous Report

Support1.33451.32901.32251.31501.3090
Resistance1.33901.34501.35201.35701.3620
RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.3365 targeting 1.3685 and stop loss below 1.3225, might be appropriate.