Weekly Report 28 -31 / 12 / 2009
The dollar versus loonie continued its pressure on pivotal support levels, thus leading to a breach in support for the symmetrical triangle pattern currently at 1.0510. The pair is heading towards vital support that determines the bearish short term direction at 1.0410; representing the neckline for the bearish technical pattern. However, if the pairsucceeded inbreaching it ,this will pave the way for more bearishness towards 1.0200 and then 1.0000. From here, we expect a bearish direction for this week that is being impeded by positive signs appearing on the stochastic oscillator, which could push it to attempt some mixed fluctuation and bullish correction every once in a while. The expected bearish direction will prevail if 1.0630 remains intact.
The trading range for today is among the key support at 1.0000 and the key resistance at 1.0730.
The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair from 1.0510 targeting 1.0340 and stop loss above 1.0630, might be appropriate.|