Weekly Report 10-14 / January / 2011

The pair built a base above pivotal 1.5510 and gradually near to touching the descending channel's resistance level that has moved downwards to 1.5640. Stochastic entered overbought areas and thereby supporting continuing the expected negative overall slant this week. The expected targets start initially at 1.5315, while keeping an eye on the breach of 1.5640 and stabilizing above it will cause the expected bearish scenario to fail.

The trading range for this week is among the key support at 1.5200 and the key resistance at 1.5775.

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 selling the pair around 1.5640 targeting 1.5400 and stop loss above 1.5775, might be appropriate.