Weekly Report February / 14 - 18 / 2011

The pair continues its upside push due to the bullish pattern highlighted in our previous reports effecting it, where the neckline has been breached as the MA 50 continues offering this bullish wave support. The negativity of momentum are forcing the pair to retest previously breached resistance levels between 0.9675 - 0.9655 before resuming the expected weekly bullish direction, where expected targets are around 0.9900 - 1.0000. Note that these expectations require stability above 0.9675 - 0.9655.

The trading range for this week is among the key support at 0.9555 and the key resistance at 1.0000.

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 0.9675 targeting 0.9900 and stop loss below 0.9555, might be appropriate.