Weekly Report 25-29/01/2010

The pair managed to breach the major support that is protecting the short-term ascending wave confirming a new bearish wave over short term basis. Momentum indicators provide overbought signals that might pressure the pair into a correctional upside move to retest the broken support currently at 1.4315 before resuming the downside trend over short term basis. The targets for the bearish wave reside around 1.4000. Nevertheless, the resumption of the upside wave is still validas far as1.4035 areas hold intact and 1.4315 is breached.

The trading range for the week is among the major support at 1.3800 and the major resistance at 1.4515.

The general trend is to the upside as far as 1.3480 is intact with targets at 1.6000.

Previous day Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.4315 targeting 1.4115 and stop loss above 1.4440, might be appropriate this week