Weekly Report 21 - 25 / February / 2011

The pair stabilized above the upside channel's support level appearing in the image above, although finding a hard time surpassing the recorded top on the third of this month around 1.6275 due to the negativity appearing through momentum indicators. This negativity will maintain the sideway fluctuation for some time until a negative slant it witnessed; however, in overall we expect a bullish trend this week due to trading returning within the upside channel, alongside support appearing through the MA 50. Note that the breach of 1.6125 will pave the way towards returning to achieve more downside correction, where it has previously halted around 38.2% Fibonacci.

The trading range for this week is among the key support at 1.6070 and the key resistance at 1.6500.

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 1.6210 targeting 1.6100 and stop loss below 1.6100, might be appropriate.