Weekly Report 24/10 -28/ 10/ 2011

We recognize a possible bullish Butterfly harmonic structure, where the structure's first potential reversal zone is at 0.9980 and also represents 127.2% Fibonacci expansion of the XA leg, while the second potential reversal zone is at 0.9905. This structure suggests a slight downside movement, before resuming the upside move this week. A breach of 0.9905 and stability below it could postpone the return of the upside move.

The trading range for this week is among the major support at 0.9970 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, we recommend buying the pair around 09980, and take profit in stages at (1.0060 and 1.0125) and stop loss below 09880 might be appropriate this week