Weekly Report 24 - 28 / January / 2011

The pair returned to trade above pivotal support 1.5910 to insure the bullish slant over an intraday basis, where the minor ascending channel is organizing the pair's trading within the recently recorded bottom around 1.5403. SMA 50 continues its support from below; hence we expect a bullish weekly direction with some fluctuation and bearish slant following it due to the negativity appearing through momentum indicators. Key targets start at 1.6185 then 1.6250, while resuming it requires stability above 1.5835.

The trading range for today is among the key support at 1.5770 and the key resistance at 1.6345.

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 1.5910 targeting 1.6250 and stop loss below 1.5770, might be appropriate.