Weekly Report 27 - 31 / December / 2010

The pair stabilized below the breached pivotal support level - currently turning into resistance at 1.5565, alongside being below Fibonacci 38.2% at 1.5510 and SMA 50. The descending channel controls present trading and thus makes us expect an overall bearish direction this week that begins initial targets around 1.5265 - 1.5200. Note the importance of breaching 1.5510 - 1.5565 could postpone resuming bearish targets and lead to an upside trend towards 1.5755.

The trading range for today is among the key support at 1.5125 and the key resistance at 1.5755.

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

Previous Report

Support1.53901.53151.52651.52001.5125
Resistance1.54751.55101.55651.56051.5670
RecommendationBased on the charts and explanations above our opinion is selling the pair around 1.5510 targeting 1.5265 and stop loss above 1.5670, might be appropriate.