Weekly Report 03/10 -07/ 10/ 2011

The pair is currently trading around 1.0510, which represents 76.4% Fibonacci correction. As shown on the hourly interval, we can recognize an ascending channel settled above the exponential moving averages 20 and 50, where consolidation above these levels could trigger more upside movement. In fact, testing the levels of 1.0550 and maybe 1.0690 are highly possible, while we don't exclude a test of further levels; however, heavy fluctuations and maybe downside correction are also possible, affected by Stochastic being within overbought areas.

The trading range for this week is among the major support at 1.0230 and the major resistance at 1.0850.

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

Previous Report

Support1.05001.04651.04001.03751.0320
Resistance1.05501.06201.06901.07651.0855
RecommendationBased on the charts and explanations above, we recommend buying the pair around 1.0450, and take profit in stages at (1.0550 and 1.0690) and stop loss with below 1.0320 might be appropriate