Weekly Report 21 - 25 / March / 2011

The pair continues moving upwards due to the effect of the bullish technical pattern that has formed by breaching 1.3860, accompanied by the upside channel controlling trading according to the image above. These factors, alongside the support offered by the MA 50, make us expect a bullish overall trend this week since we could witness some fluctuation and a minor sideways bearish correction due to the effect of momentum indicators, before heading towards resuming targets that start around 1.4280 then 1.4420. Stability above 1.4035 is vital to insure that these expectations are not postponed.

The trading range for this week is among the key support at 1.3980 and the key resistance at 1.4420.

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 around 1.4060 targeting 1.4280 and stop loss below 1.3940, might be appropriate.