Weekly Report 25-29/01/2010

After the pair ended the downside correction reaching 61.8%, it is heading to the upside to complete the formation of a bullish pattern with the neckline at 1.0535. This pattern makes us expect a possible short term upside move which will be activated after unloading negative momentum signals and breaching the mentioned neckline. The major targets for the week start from 1.0595 and then 1.0745; the upside move requires steady daily closings above 1.0140.

The trading range for the week is among the major support at 1.0055 and the major resistance at 1.0700.

The general trend is to the downside as far as 1.1225 is intact with targets at 0.9600.

Previous day Report

Support1.03901.03001.02101.01401.0055
Resistance1.04401.05351.05951.06451.0700
RecommendationBased on the charts and explanations above our opinion is buying the pair with the breach of 1.0535 targeting 1.0700 and stop loss below 1.0380, might be appropriate this week