Weekly Report 10/10 -14/ 10/ 2011

The pair was able to hold onto the positive bias and created a classic ascending channel, affected by the bullish Crab harmonic structure, which remains valid as long as the pair is still trading above 38.2% Fibonacci correction of the CD leg. We expect the upside movement to continue towards the pattern's extended targets at 1.3565 and maybe 1.3620. Stability above 1.3475 supports our positive expectations of reaching the extended targets of the harmonic structure.

The trading range for this week is among the major support at 1.3110 and the major resistance at 1.3765.

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

Previous Report

Support1.34351.34101.33901.33501.3310
Resistance1.34751.35151.35651.36201.3665
RecommendationBased on the charts and explanations above, we recommend buying the pair around 1.3390, and take profit in stages at (1.3475 and 1.3565) and stop loss with 4-hour closing below 1.3270.