Weekly Report 8 - 12 / February / 2010

The cable was able to reach the main descending channel that organizes trading for the medium term bearish wave - where current support is at 1.5545 - inline with momentum indicators entering oversold areas clearly. Thus, chances of achieving a bullish correction could take 38.2% Fibonacci at 1.5900, as a minimum limit that will meet with the retesting of the previously breached pivotal support. We must pay attention that the main support 1.5545 will cancel out any bullish correction and continue the bearish trend in a quick manner.

The trading range for today is among the key support at 1.5215 and the key resistance at 1.5900.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is to avoid trading awaiting more confirmation signs for the pair’s direction, might be appropriate.