Weekly Report18 -22 / 1 / 2010

The 61.8% Fibonacci correction level showed strength against the dollar versus swissy's attempts to descend within a bearish channel, shown in the image above, where it organizes trades for the present bearish short term direction. The stochastic is showing positive signs that might force the pair to fluctuate between MA 50 and 100 and then achieve a base built on the mentioned resistance descending channel to resume the expected bearish short term direction for this week; while its main targets are around 0.9900. It is vital that 1.0410 remain intact to achieve the expected bearish direction.

The trading range for today is among the key support at 0.9900 and the key resistance at 1.0545.

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

Previous day Report

RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0300 targeting 1.0140 and stop loss above 1.0410, might be appropriate.