Weekly Report 13 - 17 / December / 2010

The pair touched the minor upside channel's support level - representing the continuous flag pattern - at 0.9800 rebounding to the upside due to the positive effect of stochastic. We expect to witness some fluctuation between the mentioned support and resistance at 0.9855, which touches the MA 50 before heading towards breaching this pattern's support level, where in role, paves the way towards resuming the expected bearish trend for this week. The expected targets start chiefly at 0.9680 then 0.9545, but keep in mind the importance of the daily closing remaining below 0.9945 in order to maintain chances of resuming expectations.

The trading range for today is among the key support at 0.9545 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 0.9800 targeting 0.9545 and stop loss above 0.9945, might be appropriate.