Weekly Report 29/08 -02/ 09/ 2011

The pair is currently inclining to stabilize above the top of (C) point of the bullish Butterfly harmonic pattern. This scenario suggests retesting the extended target 127.2% at 1.4560. A breach of this level could support the pair to retestmore extended targetsat 161.8% of the CD leg, which means a retest that could reach the level of 1.4700. In fact, Stochastic is within overbought areas, which couldcause heavy fluctuation and maybe downside corrections, but on the other hand, consolidation above 1.4455, should support our positive expectations, while stability above 1.4365 should hold our intraday expectations valid.

The trading range for this week is among the major support at 1.4205 and the major resistance at 1.4700

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 1.4455, targeting 1.4700 and stop loss with 4-hour closing below 1.4365 might be appropriate.