Weekly Report18 -22 / 1 / 2010

The dollar versus loonie is achieving an organized descend within the bearish channel that represents the bearish short term wave, which started after breaching the symmetrical triangle, shown in our previous reports. Meanwhile, trades stabilized below 1.0400 adding strength to the bearish direction and thereby making us expect an overall bearish direction for this week; targeting mainly 0.9970 and requires the daily close below 1.0400. Momentum indicators seem to be showing oversold signs that might push the pair to attempt to bullishly correction from time to time.

The trading range for today is among the key support at 0.9970 and the key resistance at 1.0545.

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0000.

Previous day Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.0345 targeting 1.0200 and stop loss above 1.0485, might be appropriate.