Weekly Report 10-14 / January / 2011

The pair is still trading around the pivotal retest level 0.9625 due to the negativity appearing on momentum indicators, while the MA 50 continues supported the pair's upside movement. Hence, we expect the bullish trend to continue this week targeting initially main at 0.9795 that we must keep an eye on the pair when reaching the level in more details, while it represents the previously broken upside channel's support level. Note that resuming the suggested ascend requires the daily to stabilize above support levels between 0.9625 - 0.95555.

The trading range for this week is among the key support at 0.9460 and the key resistance at 0.9900.

The short term trend is to the downside as far as 1.0330 remains intact with targets at 0.8000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is buying the pair around 0.9625 targeting 0.9795 and stop loss below 0.9505, might be appropriate.