Weekly Report January 31 / February 4 / 2011

The pair is trading on a bearish slant nearing pivotal support 81.85; while at the same time maintain stability below the bearish trend's resistance level that has descended towards 82.65. It is currently below the MA 50, encouraging us to expect a breach of 81.85 and thereby we expect it to make it easier on the pair to resume the expected bearish trend for this week; targeting initially 80.35 then 79.60. We remind of the importance of the daily closing below 82.65 is vital to resume these expectations.

The trading range for today is among the key support at 80.35 and the key resistance at 83.70.

The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.

Previous Report

Support81.8581.0580.8080.3579.60
Resistance82.6583.2083.7084.2585.00
RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 81.85 targeting 80.35 and stop loss above 82.65, might be appropriate.