Weekly Report 01/08 -05/ 08/ 2011

The pair rebounded sharply to the upside after approaching 1.4215, but stable below 23.6% Fibonacci correction of the bearish bat harmonic pattern's CD leg at 1.4415. We also see Stochastic is within overbought areas; in addition, the pair breached the harmonic support line at 1.4445 and consolidated below it. In the meanwhile, stability above the first target of the harmonic pattern at 38.2% Fibonacci correction of the CD leg at 1.4335 reduces the effects of the harmonic pattern, while the RSI is stable above the 50 points level. Therefore, we stay neutral, unless a 4-hour closing below 1.4335 confirms the suggested downside trend.

The trading range for this week is among the major support at 1.4040 and the major resistance at 1.4620

The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.

Previous Report

Support1.43351.42751.42151.41651.4040
Resistance1.44151.44451.44901.45501.4620
RecommendationBased on the charts and explanations above we recommend selling the pair with 4-hour closing below 1.4335 targeting 1.4215 and stop above 1.4415 might be appropriate