Weekly Report 21 - 24 / 12 / 2009

The cable is fluctuating around the support level for the descending channel that organizes the bearish short term waves current trades, while remaining intact below pivotal support 1.6260, which represents the neckline for the bearish technical pattern where its targets are around 1.5700. Momentum indicators presently stand neutral and might need to fluctuate through a minor bullish correction, which will retest the previousbroken neckline and then resume the general expected bearish direction for this week that mainly requires trades below 1.6555 so it may prevail.

The trading range forthis weekis among the key support at 1.5700 and the key resistance at 1.6555.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.

Monthly Report

RecommendationBased on the charts and explanations above our opinion is selling the pair from 1.6260 targeting 1.6050 and stop loss above 1.6410, might be appropriate.