Weekly Report February / 14 - 18 / 2011

The pair closed last week below the upside channel's support level, where the descending channel organizes the current wave and supported by the SMA 50 that is negatively pressuring the pair. Stochastic is gradually losing bullish momentum while the pair nears the retest level for the breached support that has turned into resistance around 1.6090. These factors make us expect a bearish direction this weekinitially targeting 1.5860; however, returning to stabilize above 1.6090 with daily closing will carry the pair to the upside once agian.

The trading range for this week is among the key support at 1.5770 and the key resistance at 1.6300.

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

Previous Report

Support1.59901.59651.59051.58551.5810
Resistance1.60901.61801.62501.63001.6345
RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.6090 targeting 1.5860 and stop loss above 1.6180, might be appropriate this week