EUR/USD Weekly Technical Report 17-21/12/2012

The pair breached key resistance level of the downside move and the sideway correctional resistance level shown on the graph; this supports the possibility of another upside move during this week. Positive Linear Regression Indicators support this outlook, but we don’t rule out some volatility and downside correction due to overbought signals on Stochastic. Stability above 1.3000 is a positive condition for this week.

The trading range for this week is among the key support at 1.2975   and key resistance at 1.3480 .

The general trend over short term basis is negative targeting 1.1865 a s far as areas of  1.3550  remains intact.

Support 1.3120 1.3065 1.3030 1.3000 1.2975

Resistance 1.3170 1.3235 1.3265 1.3305 1.3360

Recommendation Based on the charts and explanations above, our opinion is selling the pair above 1.3120 targeting 1.3235, 1.3305 then 1.3480 and stop-loss with four-hour closing below 1.3030 might be appropriate this week