Weekly Report 12/09 -16/ 09/ 2011

The pair's upside move failed with the breach of 1.3910, as we can see a possible harmonic Bat Pattern. This suggested pattern should be completed at 1.3110, where this level represents 88.6% Fibonacci correction of the XA leg of the suggested pattern, however, 78.6% Fibonacci correction represents a barrier facing the pair's downside trend. A breach of 61.8% Fibonacci correction of the XA leg at 1.3665 proposes completing the suggested pattern, therefore, the downside movement could continue towards the PRZ as long as the pair is stable below 1.3910 and preferably below 1.3665.

The trading range for this week is among the major support at 1.3110 and the major resistance at 1.3910.

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 selling the pair below 1.3665, and take profit in stages at (1.3320 and 1.3110) and stop loss with daily closing above 1.3840 might be appropriate.