Weekly Report 17-21/10/ 2011

The pair is stable above 127.2% Fibonacci correction of the CD leg of the bullish Crab harmonic pattern, while harmonic analysis rules suggest that stability above this level could support the pair to reach the last extended target of the pattern at 161.8% Fibonacci correction of the CD leg. Therefore, consolidation above 1.3825 suggests that the upside movement could extend towards 1.4010. Stability above 1.3680 and 1.3710 is much better for our expectations to prevail.

The trading range for this week is among the major support at 1.3475 and the major resistance at 1.4105.

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 buying the pair above 1.3825, and take profit in stages at (1.3910 and 1.4010) and stop loss with 4-hour closing below 1.3710 might be appropriate.