Weekly Report 08/08 -12/ 08/ 2011

As we expected on Friday, the pair inclined sharply reaching all the suggested targets for that day. With the start of a new week, we find the pair is trading above 61.8% Fibonacci of the CD legfor the bullish harmonicBat pattern, which suggests the upside move to extendtowards 78.6% Fibonacci and maybe C point top of this pattern. Consolidation above 1.4300 suggests a retest of 1.4370 and maybe 1.4450. Downside correction is expected to fill the gap, which appeared today, but stability above 1.4205 shall keep our positive expectations valid.

The trading range for this week is among the major support at 1.4015 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

RecommendationBased on the charts and explanations above we recommend buying the pair around 1.4255 and targeting 1.4450 and stop loss with 4-hour closing below 1.4150 might be appropriate.