Weekly Report 14/11 -18/ 11/ 2011

The pair returned to consolidate above the neckline of the suggested head and shoulders pattern, where this consolidation is accompanied with stability above the Exponential Moving Averages 20 and 50, which negated the continuity of the downside movement mentioned in our previous report. Stochastic is within overbought areas, but MACD is turning positive; therefore, the pair could retest areas around 1.3695-65 in attempts to gain positive momentum. The pair could enter a bullish wave, but a breach of 1.3665 and consolidation below it could activate our negative outlook, supported by the bearish head and shoulders pattern. Therefore, we remain neutral in our weekly report, awaiting further confirmation by tracking the pair's behavior around the level of 1.3665.

The trading range for this week is among the major support at 1.3380 and the major resistance at 1.4205.

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

Previous Report

Support1.37201.36951.36651.36201.3665
Resistance1.38251.38401.38801.39101.3940
RecommendationBased on the charts and explanations above we remain neutral awaiting more confirmations