Weekly Report 28 / February / 2011

According to the weekly chart, the pair managed to resume a daily candlestick closing above the broken critical resistance level that has currently turned into support around 1.6070; and trading stabilized above the MA 50. These factors are considered positive signs regarding the short term bullish trend continuing and chiefly targeting 1.6420 - 38.2% Fibonacci shown above -. Stochastic is showing some negativity on the weekly time frame, which could maintain fluctuations for some time before heading towards continuing the expected bullish trend for this week, which requires two main targets to resume; first, the breach of 1.6245 to make the pair's mission easier moving to the upside, second is a closing achieving stability above 1.5960.

The trading range for this week is among the key support at 1.5960 and the key resistance at 1.6420.

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

Previous Report

Support1.60701.59901.59601.59051.5855
Resistance1.61351.61601.62201.62751.6345
RecommendationBased on the charts and explanations above our opinion is buying the pair around 1.6070 targeting 1.6245 and stop loss below 1.5960, might be appropriate.