Weekly Report18 -22 / 1 / 2010

The cable was able to reach resistance for the main descending channel that is showing strong resistance against attempts at achieving more bullish movement. We see that the pair was able to build a support base at 1.6240, supported by the pair within the bearish short term channel in addition to positive signs appearing on momentum indicators; all factors that make us expect the direction for this week is bullish; targeting first the breach of 1.6345 to pave the way to head towards the main target for this week at 1.6650. Keep in that achieving this ascend requires the daily close to remain above 1.6240.

The trading range for today is among the key support at 1.6000 and the key resistance at 1.6550.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.

Previous day Report

Support1.62401.61501.61001.60601.6000
Resistance1.63451.64101.65001.65501.6650
RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 1.6345 targeting 1.6650 and stop loss below 1.6240, might be appropriate.