Weekly Report 3 - 7 / January / 2011

The pair built a base below the previously breached pivotal support level at 82.30, alongside being below SMA 50 keeping in mind how the 23.6% Fibonacci correction maintained stability - descending from 95.00 to 80.24 - in front of the pair's attempts to ascend. These factors combined make us expect a bearish trend this week, alongside some fluctuation and minor bullish correction due to the positivity of momentum indicators before heading towards resuming bearish targets that initially start at 80.35 then below 79.00. Note the importance of a daily closing below 82.30 in order to maintain chances of resuming these expectations.

The trading range for this week is among the key support at 79.20 and the key resistance at 83.15.

The short term trend is to the downside as far as 89.35 remains intact with targets at 77.70.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 82.30 targeting 80.35 and stop loss above 83.15, might be appropriate.