Weekly Report 28 / February / 2011

The pair stabilized above 1.3715, while signs of a bullish technical pattern have appeared with its neckline around 1.3860, according to the image above. The MA 50 continues supporting the pair, while stochastic gives off positive signs as these factors combined make us expect an overall bullish weekly trend that requires a clear breach of 1.3860 in order to activate it and stabilize above it. The awaited targets start initially around 1.4000 then 1.4160, but in return note that resuming expectations requires a closing above 1.3715.

The trading range for this week is among the key support at 1.3610 and the key resistance at 1.4160.

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 a four hour closing above 1.3860 targeting 1.4100 and stop loss below 1.3715, might be appropriate.