Weekly Report 26/09 -30/ 09/ 2011

The pair is still biased to the downside, where consolidation below 1.3665 supports the bearishness that could lead the pair to test 1.3320 and maybe towards 1.3110. Our expectations are based on the breach of 61.8% Fibonacci correction as shown above; in addition to the possible harmonic formation that is likely a Bat pattern which will be completed at 88.6% Fibonacci correction of CD leg at 1.3110. In result, we expect the downside movement to extend this week.

The trading range for this week is among the major support at 1.3110 and the major resistance at 1.3840

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 around 1.3480, and take profit in stages at (1.3320 and 1.3110) and stop loss with a daily closing above 1.3600 might be appropriate.