Weekly Report 28 -31 / 12 / 2009

The dollar versus swissy, according to the expected scenario in last week's report, attempted to complete the bullish technical pattern where its formation scenario is clearer according to the image above. The neckline for this pattern is currently at 1.0525 and makes us expect some bearish correction to complete its formation; whereas we see that the overall direction for this week could possibly be bullish and targets the breach of the neckline to open the way to resume the bullish short term direction. The stochastic supports the near reversal to the upside, while keeping in mind the importance of 1.0140 remaining intact to maintain chances of achieving these expectations.

The trading range for today is among the key support at 1.0055 and the key resistance at 1.0695.

The general trend is to the downside as far as 1.1225 remains intact with targets at 0.9600.

Monthly Report

RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.0280 targeting 1.0525 and stop loss below 1.0140, might be appropriate.