Weekly Report 6 - 10 / December / 2010

The pair continues trading within the key downside channel appearing in the chart above since its resistance is around 1.0255, where we notice that the last breach of the pivotal support level is at 1.0080 and is vital to pave the way towards continuing trading within this channel, and then head towards achieving more bearish movement for this week. Stochastic is showing a clear negative crossover supporting continuing the suggested bearish trend, which chiefly targets attacking critical support for the short term direction at 0.9925 then 0.9815. Note the importance of building a base below resistance levels between 1.0080 - 1.0125 to insure that the suggested bearish trend is not postponed.

The trading range for today is among the key support at 0.9815 and the key resistance at 1.0255.

The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.0080 targeting 0.9925 and stop loss above 1.0175, might be appropriate.