Weekly Report 20 - 24 / December / 2010

The chart aboveshows sideway trading range, dominating the pair between 1.0000 and 1.0140, while short term trading is within the key descending channel since its resistance is at 1.0205. Momentum indicators are giving off negative signs that show expectations of trading to continue within this downtrend and thereby we hold onto expectations of a bearish direction within the mentioned channel, but keep in mind the breach of 1.0205 and building a base above it will cancel out the suggested bearish direction. Bearish targets start at 0.9925 then 0.9815.

The trading range for today is among the key support at 0.9815 and the key resistance at 1.0325.

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 1.0140 targeting 0.9925 and stop loss above 1.0245, might be appropriate.