Weekly Report 24 - 28 / January / 2011

The pair stabilized below the psychological barrier 1.0000, accompanied by stochastic entering overbought areas. These factors alongside the negative pressure offered by SMA 50, and trading within the short term descending channel, are factors that encourage us to maintain expectations to continue the bearish direction this week towards key targets that start around 0.9815 then 0.9815. Chances of continuing this suggested bearish trend depends on stability below 1.0000 - 1.0050.

The trading range for today is among the key support at 0.9700 and the key resistance at 1.0050.

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 1.0115, might be appropriate.