Weekly Report 19/09 -23/ 09/ 2011

The pair declined sharply with a bearish opening gap, which could be covered later, however, this gap did not negate the formation of the suggested CD leg of the harmonic structure, which suggests more downside movement. Stochastic provided a negative crossover, while RSI is turning positive; where all those signs together contradict each other, in addition to the need to cover the opening gap and our belief that the pair is still forming the CD leg of the bearish harmonic structure. Therefore, we remain neutral in our weekly report, awaiting more confirmations.

The trading range for this week is among the major support at 1.3110 and the major resistance at 1.4155

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

Previous Report

Support1.36001.35301.34351.33951.3320
Resistance1.37201.37651.38401.38801.3910
RecommendationBased on the charts and explanations above we remain neutral awaiting more confirmations