Weekly Report 7 - 11 / March / 2011
The pair touched 1.4000 and reversed to the downside due to the effect of this psychological barrier, in addition to the negative momentum appearing through the four hour timeframe. In overall, the breach of the bullish technical pattern's neckline around 1.3860 along side of the upside channel controlling present trading, in the image above, and support offered by the MA 50 are all factors that make us expect a bullish trend this week as targets start around 1.4180 then 1.4275. In return, note the importance of stability while closing above 1.3860, in order to insure that this expected scenario is not postponed.
The trading range for this week is among the key support at 1.3770 and the key resistance at 1.4275.
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.
|Recommendation||Based on the charts and explanations above our opinion is buying the pair around 1.3925 targeting 1.4085 and stop loss below 1.3860, might be appropriate.|