Weekly Report 21 - 25 / February / 2011

The loonie found it hard to resume a closing below the sideway range's support, highlighted in yellow, around 0.9840; although stochastic found good support for the pair pushing it to the upside since we expect it to revisit the initial channel's resistance level around 0.9925. Meanwhile, the MA 50 will meet this resistance for additional strength for this level and thereby making us expect a bearish trend to continue this week; targeting mainly 0.9700 and 0.9600, while resuming it requires a closing below resistance levels between 0.9925 and 1.0000.

The trading range for this week is among the key support at 0.9600 and the key resistance at 1.0000.

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 0.9925 targeting 0.9700 and stop loss above 1.0055, might be appropriate.