Weekly Report 20 - 24 / December / 2010

The pivotal resistance of1.5650 was able toprevent the pair from moving to the upside to cause some strong bearish movement that will breach the previously mentioned pivotal support level around 1.5525, which has recently turned into resistance ascending towards 1.5535. This breach and base built since last week's closing below it makes us expect a bearish trend this week, where key targets start at 1.5315. Note that the daily closing above 1.5535 could postpone resuming this suggestedbearish trend and helping it to return to the bullish direction.

The trading range for today is among the key support at 1.5230 and the key resistance at 1.5730.

The short term trend is to the upside as far as 1.5315 remains intact with targets at 1.7000.

Previous Report

Support1.54851.54251.53901.53151.5230
Resistance1.55351.56051.56501.57301.5810
RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.5535 targeting 1.5315 and stop loss above 1.5560, might be appropriate.