Weekly Report 3 - 7 / January / 2011

The pair was able to resume a daily closing below the psychological barrier 1.0000, keeping in mind that trading today opened on a bearish price gap pointing to a bearish slant for the pair. Trading continues within the descending short term channel, alongside negative pressure offered by SMA 50 are all factors that encourage us to expect a bearish direction for this week; targeting 0.9650 initially, while resuming stability below 1.0145.

The trading range for this week is among the key support at 0.9650 and the key resistance at 1.0145.

The short term trend is to the upside as far as 1.0665 remains intact with targets at 0.9000.

Previous Report

Support0.98750.98150.97500.97000.9650
Resistance1.00001.00751.01451.02001.0245
RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.0000 targeting 0.9815 and stop loss above 1.0145, might be appropriate.