Weekly Report 31/10 -04/ 11/ 2011
61.8% Fibonacci correction at 0.9885 was able to stop the pair's negative momentum, while the pair is currently biased to the upside, but still below 50% Fibonacci correction at 1.0030. Consolidation below the mentioned correction could trigger a negative bias, especially when the pair is trading below the previously breached ascending main support, which turned into resistance at 1.0115. Therefore, we expect the pair to provide another bearish attempt, but in case the pair failed to breach 0.9885, it could significantly rebound to the upside.
The trading range for this week is among key support at 0.9700 and key resistance at 1.0365.
The general trend over short term basis is to thedownsidetargeting0.9000as far as areas of1.0665areas remain intact.
|Recommendation||Based on the chart and explanations above, we recommend selling the pair around 1.0030 and take profit in stages at (0.9905 and 0.9885) and stop loss above 1.0140 might be appropriate.|