Weekly Report 17 - 21 / January / 2011

The pair found strong resistance around 1.3425 during the journey to the upside last week, where this level represents the neckline for the bullish technical pattern that we think holds the keys to the expected direction this week. Hence, we expect to witness some fluctuation and slant for some bearish correction for the ascend for last week before breaching this level and then pave the way in front of resuming the expected bullish direction this week, which requires two main factors; first, a clear breach 1.3425 and the second is a closing above 1.3165. The awaited targets are mainly around 1.3715.

The trading range for this week is among the key support at 1.3165 and the key resistance at 1.3715.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair with the four hours above 1.3425 targeting 1.3625 and stop loss below 1.3325, might be appropriate.