Euro Technical Major Currencies (2010-01-20)

The appearance of the bearish technical pattern yesterday caused more descend that insured the intraday direction reversal to the downside through insuring the breach of support for the ascending channel, mentioned yesterday. Meanwhile, momentum indicators have showed oversold signs that might cause fluctuation before resuming the bearish intraday direction; targeting 1.4050 mainly. It is vital that 1.4375 remain intact so chances of achieving these expectations may prevail.

The trading range for today is among the key support at 1.4050 and the key resistance at 1.4375.

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

Weekly Report Previous ReportSupport1.03151.02701.02201.01751.0125Resistance1.03601.04051.04851.05451.0605RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.4255 targeting 1.4115 and stop loss above 1.4375, might be appropriate.