Weekly Report 12/09 -16/ 09/ 2011

The pair rebounded sharply to the upside reaching now around the psychological barrier at 1.0000, however a breach of this level could support the pair to test the level of 1.0090, which represents 127.2% Fibonacci correction of the downside movement which started at 1.0008 and ended at 0.9725. The upside move is still valid for this week, while a breach of the several resistances between 1.0010 and 1.0090 should support the pair to test the level of 1.0185, but a failure should trigger a downside correction.

The trading range for this week is among the major support at 0.9710 and the major resistance at 1.0260

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

Previous Report

RecommendationBased on the charts and explanations above, our opinion is buying the pair above 0.9950, and take profit in stages at (1.0090 and 1.0185) and stop loss with 4-hour closing below 0.9830 might be appropriate.