Weekly Report 15 - 19 / February / 2010
The pair ihas beentraded within a sideway range last week between the recorded bottom at 1.5555 and 23.6% Fibonacci correction at 1.5765. We still hold onto our expectations for last week, with a possibility of a bullish correction occurring this week that first requires the breach of 1.5765 to head towards 1.5900 then 1.6005. It is also vital that the daily closing remain below 1.5555 to maintain chances of achieving this bullish correction. On the other hand, the breach of the final level will pave the way for a continuous bearish direction that targets levels around 1.5200 initially.
The trading range for today is among the key support at 1.5200 and the key resistance at 1.6005.
The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.
|Recommendation||Based on the charts and explanations above our opinion is buying the pair with the breakout of1.5765 targeting 1.5900 and stop loss below 1.5640, might be appropriate.|