Weekly Report 25/07 -29/ 07/ 2011
The potential reversal zone -PRZ- of our caught bearish Gartly harmonic pattern affected the pair, and we see tahtit has reached 23.6% Fibonacci correction at 1.4330 inline with our previous expectations. But, the first target of the most harmonic patterns begins at 38.2% Fibonacci correction of the CD leg, which means that Gartly harmonic pattern's first target is around 1.4270. Therefore, trading below 1.4490,argues us to expect a downside correction during this week. A breach of the last level mentioned may support the pair to reach the X point near the peak around 1.4580.
The trading range for this week is among the major support at 1.4060 and the major resistance at 1.4650.
The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.
|Recommendation||Based on the charts and explanations above we recommend selling the pair around 1.4400 and take profit in stages at (1.4330, 1.4270, and 1.4220) and stop loss with 4-hour closing above 1.4490 might be appropriate.|