Weekly Report 21 - 25 / March / 2011

The pair stabilized above the previously broken minor resistance level above 1.6195, which is considered a signal that more upside intraday movement is expected due to the effect of the bullish technical pattern that has formed by breaching this level. In return, trading is still below the broken upside channel's support level that is presently turning into resistance around 1.6305. According to the image above, we find that chances of forming a bearish technical pattern, where its suggested neckline is around 1.6305, remains intact; however, according to momentum indicators the current negativity is pressuring the pair to the downside. These conflicting factors, we recommend observing upcoming trades specifically around critical levels represented by support 1.6135 and then the mentioned neckline; while resistance 1.6305 that has been breached could cause the expected bearish technical pattern to fail.

The trading range for this week is among the key support at 1.5960 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 explanation above our opinion is observing the pair’s movement to insure its upcoming direction.