Weekly Report 07 - 11 / February / 2011

The pair's trading stabilized within the descending correctional channel, maintaining the negative pressure on the pair especially with stability below the SMA 50. Meanwhile, we signs of a bearish technical pattern under formation as mentioned in our previous report and accordingly the negative pressure might be still evident on the pair. In return, momentum indicators are oversold and might push the pair to the upside to surpass the downside channel's resistance around 1.3680; however, this conflicting signals makes us recommend keeping an eye on the pair and reviewing our daily reports for more details on the expected direction. The critical levels are around 1.3680 and 1.3575.

The trading range for this week is among the key support at 1.3425 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.