Weekly Report 10-14 / January / 2011

The pair maintained its stability below the psychological barrier 1.0000, while trading continued within the key descending channel appearing above, alongside the negative pressure offered by the MA 50 that are factors that we think will cause the pair to continue the expected bearish trend this week towards the awaited key targets that start at 0.9815 then 0.9700. Note that breaching 1.0000 could pressure the pair to revisit 1.0120, which is considered to be the vital factor in order for the expected bearish direction to be resumed.

The trading range for this week is among the key support at 0.9700 and the key resistance at 1.0120.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.0000 targeting 0.9815 and stop loss above 1.0120, might be appropriate.