Week of February 6-11, 2011

EURUSD broad outlook remains in a bullish declining wedge formation as identified on the monthly chart with the February upside trendline resistance at 1.4478 while the downside trendline support coming in at 1.1655.  Additionally, the fall from the November 2009 high of 1,5143 which is complete at the 2010 low of 1.1876 remains in a broad 1.3124-1.3895 consolidation zone as a monthly open and higher close above 1.3895 will favor further rise, while to the downside a monthly open and lower close below 1.3124 will favor further downside extension.   As to the medium term rise from the January 2011 low of 1.2873, this rise remains active  while 1.3483 supports, as ONLY a daily open and lower close below 1.3483 will complete the rise from 1.2873 while last weeks 1.3860 high caps.  For the week ahead look for bids with the 1.3350-1.3400 to support further rise targeting 1.3952 in the days ahead.