Weekly Report 13 - 17 / December / 2010

The pair's trading is wedged below the downside channel's resistance level 1.5810 and above the MA 50, where its value is currently at 1.5750 although we still await for a clear breach of pivotal resistance 1.5835 representing the neckline for the bullish trend, appearing in our previous reports. The stochastic is giving off bullish signs that make us expect an upside direction for this week, which requires critical factors to prevail; first, the breach of critical resistance between 1.5810 - 1.5835 and build a base above it, alongside a weekly closing above 1.5725. The awaited key target is around 1.6040.

The trading range for today is among the key support at 1.5590 and the key resistance at 1.6100.

The short term trend is to the upside as far as 1.5315 remains intact with targets at 1.7000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.5835 targeting 1.6040 and stop loss below 1.5725, might be appropriate.