Weekly Report 21 - 24 / 12 / 2009

The euro versus dollar continues assuring the breach of the main ascending support for the channel for the bullish medium term, where it will steadily head towards 38.2% Fibonacci; supported by trades below MA 100 today. Momentum indicators are showing bullish positive signs that might push the pair tocorrect mildlyafter a chain of downside movement that have started early this month. On the overall, we see that the expected direction for this week is bearish and targets 1.4110 and then retest the strength of main support between 1.4110 and 1.4035. The expected bearish direction will prevail if trades remain below 1.4610.

The trading range forthis weekis among the key support at 1.3800 and the key resistance at 1.4870.

The general trend is to the upside as far as 1.4035 remains intact with targets at 1.6000.

Monthly Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.4510 targeting 1.4110 and stop loss above 1.4610, might be appropriate.