Weekly Report 10-14 / January / 2011

The pair found strong resistance around 23.6% Fibonacci for the complete bearish trend from 94.98 to 80.24, thereby redirecting trading below the bearish trend's resistance level appearing in the image above at 83.30. Stochastic is giving off oversold signs that will remain fluctuating near the mentioned resistance level, but in overall we think that the expected trend for this week is bearish, due to stability below 83.30; technical targets start at 81.05. Note that the daily closing above 83.30 could weaken chances of resuming the awaited bearish targets.

The trading range for this week is among the key support at 81.05 and the key resistance at 84.25.

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 83.30 targeting 81.95 and stop loss above 84.25, might be appropriate.