Weekly Report 10-14 / January / 2011

The pair stabilized below the descending channel's resistance level, while the negative effect continues in order to breach pivotal sideway support at 1.3055, appearing in the image above. These factors make us expect a bearish overall direction this week that will start initial targets at 1.2800 then 1.2650, but keep in mind the breach of 1.2980 could pave the way towards reaching the breached pivotal support level mentioned above.

The trading range for this week is among the key support at 1.2650 and the key resistance at 1.3080.

The short term trend is to the upside as far as 1.2795 remains intact with targets at 1.5135.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.2980 targeting 1.2800 and stop loss above 1.3080, might be appropriate.