Weekly Report 4 - 8 / April / 2011

The pair is still stuck between 23.6% and 38.2% correction, while we still see some conflict between technical signs between stochastic's negativity and SMA's positive signs. From here, the upcoming intraday direction is hanging in critical levels between 1.6150 and support 1.5995. Meanwhile, the mentioned resistance representing the neckline for the suggested bullish pattern holds the keys to pushing the pair towards 1.6350 - 1.6400. Note the importance of observing critical levels highlighted in order for signs that will insure the direction for this week.

The trading range for this week is among the key support at 1.5870 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 with a four hour closing above 1.6150 targeting 1.6350 and stop loss below 1.6060, (or) selling the pair with the four hour closing below 1.5995 targeting 1.5810 and stop loss above 1.6060, might be appropriate.