Weekly Report January 31 / February 4 / 2011
The pair neared the ascending channel's support level controlling trading by trading on an intraday, which meets with 23.6% Fibonacci correction that returned to form support in front of the pair around 1.5810. Accompanying this movement is stochastic entering oversold areas, which encourages us to expect an overall bullish direction this week that starts targets by attacking minor resistance 1.5975; holding the keys towards 1.6060 then 1.6185. Note the importance of a daily closing above 1.5820 - 1.5810 in order to maintain chances of resuming these expectations.
The trading range for today is among the key support at 1.5660 and the key resistance at 1.6185.
The short term trend is to the upside as far as 1.5315 remains intact with targets at 1.7000.
|Recommendation||Based on the charts and explanations above our opinion is buying the pair around 1.5820 targeting 1.6060 and stop loss below 1.5745, might be appropriate.|