Weekly Report 28 -31 / 12 / 2009

The euro versus dollar faced strong support around 1.4210, pushing the pair to the upside to start a bullish correction supported by positive signs appearingon momentum indicators. From here, we expect a bullish correction for this week; targeting 1.4790 while paying attention to vital resistance at 1.4575, representing the MA 100 with 38.2% Fibonacci correction, appearing on the image above. It is vital to pay attention to the constant expectations of a bullish direction which requires the daily closing above 1.4225.

The trading range for today is among the key support at 1.4000 and the key resistance at 1.4790.

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 buying the pair from 1.4225 targeting 1.4445 and stop loss below 1.4110, might be appropriate.