Weekly Report 10/10 -14/ 10/ 2011

We recognize a bearish candle sticks formation below the Exponential Moving Averages 20 and 50, while the pair is currently trading below the second target of the bearish AB=CD harmonic pattern, which represents 61.8% Fibonacci correction of the CD leg. According to the harmonic analysis rules, stability below the second target suggests reaching the pattern's extended targets, and as a new week begins, we witnessed a negative crossover on Stochastic, which supports our outlook. Therefore, we expect a downside movement to control the pair's movement during this week.

The trading range for this week is among the major support at 1.0000 and the major resistance at 1.0620.

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, we recommend selling the pair around 1.0340, and take profit in stages at (1.0200 and 1.0115) and stop loss above 1.0480 might be appropriate