Weekly Report 3 - 7 / January / 2011

The pair followed the descending channel's support level controlling short term trading, while trading stabilized below 0.9460 in a daily closing chain. Momentum indicators are showing positive signs, where we expect the pair to push for some minor bullish correction that could reach levels 0.9430 - 0.9460 before heading towards resuming the expected bearish trend for this week, supported by SMA 50 that continues pushing the pair to the upside. The expected technical targets start at 0.9200, while requiring 0.9525 to stabilize in order to resume expectations.

The trading range for this week is among the key support at 0.9150 and the key resistance at 0.9525.

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 0.9430 targeting 0.9270 and stop loss above 0.9525, might be appropriate.