Weekly Report08 -12 / February / 2010

Despite of the numerous bearish technical signs appearing, we maintain our expectations of a bearish direction continuing as suggested in report last week. On the daily chart above there seems to be some bullish rebound appearing on momentum indicators, accompanied by a bullish rebound from levels around 1.4860 without the daily close below it (this level is 61.8% correction from the bullish wave that has startedin December 2009). Therefore, we expect a bullish direction that might effect trading this week, while depending on forming a bullishharmonic technical pattern alongside stabilizing above 61.8%, which represents the 161.8% extension from AB in our harmonic pattern.

The trading range for today is among the key support at 1.4710 and the key resistance at 1.5615.

The general trend is to the upside as far as 1.4850 remains intact with targets at 1.7000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.5095 targeting 1.5385 and stop loss below 1.4920, might be appropriate.