Weekly Report January 31 / February 4 / 2011

The four hour chart above is showing some negative factors that are effecting the pair's intraday short term direction, where signs of a descending channel have halted the pair's upside push last week; as the 23.6% Fibonacci correction meets with its resistance. On the other hand, the pair is finding it hard to surpass the retest level for the previously breached bullish trend. In return, stochastic entered oversold areas along with the MA 50 forming good support that will maintain some luck in resuming the last bullish wave that has started from 1.2870. Crossover signs are making us recommend observing upcoming trading for the pair until we receive signs that insure the upcoming direction.

The trading range for today is among the key support at 1.3310 and the key resistance at 1.3960.

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 explanation above our opinion is observing the pair’s movement to insure its upcoming direction.