Weekly Report 21 - 25 / February / 2011

The pair breached the minor downside channel's resistance level and returned to resume the bullish short term trend, while the previously breached 23.6% Fibonacci correction is showing strong resistance that is impeding the pair's upside direction, shown on the chart above. The breach along with the MA 50 are factors that make us expect a bullish overall direction this week starting initially targets around 1.3860 then 1.980, but note that the breach of 1.3595 and stabilizing below it could postpone the suggested upside trend.

The trading range for this week is among the key support at 1.3425 and the key resistance at 1.3980.

The short term trend is to the upside as far as 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 a four hour closing above 1.3715 targeting 1.3980 and stop loss below 1.3595, might be appropriate.