Weekly Report 17 - 21 / January / 2011

The pair continued trading around pivotal support 0.9625 representing the neckline for the bearish technical pattern highlighted in our previous report. This pattern, which has been superseded by the breach of the rising wedge pattern - with a natural bearish slant -, encourages us to expect a bearish weekly direction, targeting initially 0.9380. Chances of this pattern succeeding require stability below 0.9725.

The trading range for this week is among the key support at 0.9380 and the key resistance at 0.9820.

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 with a four hour closing below 0.9625 targeting 0.9380 and stop loss above 0.9725, might be appropriate.