Weekly Report 15/08 -19/ 08/ 2011

During the past week, the pair tradedbetween 88.6% and 23.6% Fibonacci correctional levelsof the bullish Bat harmonic pattern, which kept the positive effect of the pattern. Stochasticreflects overbought case, which couldcause heavy fluctuations. We expect an upside trend, but heavy fluctuations and downside corrections are possible, however, as long as the pair is stable above 1.4120 with 4-hour closing, the upside trend remains valid, where the harmonic patterns (Bat, Three Drivers) provide the pair with upside momentum.

The trading range for this week is among the major support at 1.3910 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 1.4225 and targeting 1.4455 and stop loss with 4-hour closing below 1.4120 might be appropriate.