Weekly Report 01/08 -05/ 08/ 2011

The bullish AB=CD pattern supported the pair successfully to rebound sharply to the upside as we expected in the past week. The pair is currently stable above the MA 50 at 0.9500 and above 23.6% Fibonacci correction at 0.9490. The harmonic pattern is still valid and could extend the upside move, reaching the pattern's second target and maybe the first extended target during this week, where these targets are at 61.8% and 78.6% Fibonacci corrections at 0.9635 and 0.9700 respectively. Our expectations remain valid, but stability above 0.9400 is required.

The trading range for this week is among the major support at 0.9350 and the major resistance at 0.9770.

The short-term trend is to the downside as far as 1.0665 remains intact targeting 0.9000.

Previous Report

Support0.94900.94450.94000.93850.9350
Resistance0.95500.96000.96250.97000.9770
RecommendationBased on the charts and explanations above our opinion is buying the pair around 0.9490 and take profit in stages at (0.9550, 0.9635 and 0.9700) and stop loss with 4-hor closing below 0.9400 might be appropriate.