Weekly Report 17 - 21 / January / 2011

The pair is still trading within the descending short term channel, while stabilizing below the previously breached psychological barrier at 1.0000 as the MA 50 continues offering negative pressure to support trading within this downward trend. These factors make us expect a bearish trend this week, where we still await for resuming technical targets that start at 0.9700 then 0.9600. It is vital that the daily closing is below 1.0070 requires factors to maintain chances of resuming these expectations.

The trading range for this week is among the key support at 0.9600 and the key resistance at 1.0070.

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 0.9920 targeting 0.9700 and stop loss above 1.0020, might be appropriate.