Weekly Report 3 - 7 / January / 2011

After last week's closing above the previously breached bullish trend's support level - which has turned into resistance at 1.5565 - trading today opened with a price gap below this level, thereby postponing returning to trade to the upside. Meanwhile, trading is still within the descending short term channel after stabilizing above SMA 50 and 38.2% Fibonacci correction, which are positive factors. Hence, we recommend keeping an eye on upcoming trading, specifically critical levels between support 1.5480 and resistance 1.5710 that hold the keys to the pair's upcoming direction.

The trading range for this week is among the key support at 1.5265 and the key resistance at 1.5810.

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 explanation above our opinion is observing the pair’s movement to insure its upcoming direction.