Weekly Report 03/10 -07/ 10/ 2011

The pair is trading around critical levels as shown on the provideddaily chart, where these levels arearound 1.3320, and represent 78.6% Fibonacci correctional levelof the XA leg of a suggested harmonic structure, where its first Potential Reversal Zones at 1.3110, while consolidation below 1.3320 suggests reaching the mentioned level. In fact, the bearish opening gap seen today could trigger heavy fluctuations and maybe an upside correction, but any trading below 1.3420 suggests the extension of the intraday downside movement, while stability above 1.3535 weakens our negative expectations significantly.

The trading range for this week is among the major support at 1.3015 and the major resistance at 1.3665

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 1.3395, and take profit in stages at (1.3250 and 1.3110) and stop loss with daily closing above 1.3470.