Weekly Report 6 - 10 / December / 2010

The pair was unable to build a base above the psychological barrier 1.0000 forming correction 23.6% Fibonacci appearing through the image above, trading has reversed to the downside and continues within the upside correctional channel, where its current support level is at 0.9645. Positive momentum appearing through momentum indicators is adding strength to the mentioned support level, but the resistance level's strong stance is between 0.9970 - 1.0000 since the daily closing is below it; thus, making us expect an overall bearish weekly trend targeting 0.9600 then 0.9500, as long as the daily closing is below 0.9925.

The trading range for today is among the key support at 0.9500 and the key resistance at 1.0000.

The short term trend is to the downside as far as 1.0330 remains intact with targets at 0.8000.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling the pair around 0.9855 targeting 0.9645 and stop loss above 0.9970, might be appropriate.