Weekly Report (26-30 September 2011)

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The pair continues to trade negatively within the downside correction shown on image. Now, a negative technical pattern has appeared and the neckline for the pattern reside at 0.8680, and this may be another factor to achieve more bearishness targeting the support of the main ascending channel at 0.8590 and may extend to reach 0.8570. This pattern will be confirmed with a four-hour closing below the aforementioned neckline, however stochastic is providing positive signs that may prevent completing the pattern. Therefore, we prefer being neutral for now and following the upcoming reports for more confirmations.

The expected trading range for the week is among the key support at 0.8455 and the key resistance at 0.8885.

The short term trend is to the upside so far as 0.8165 remains intact targeting 1.0370.

Previous Report

Support0.86800.86450.85900.85000.8455
Resistance0.86900.87300.87900.88450.8885
RecommendationBased on the charts and explanations above we recommend staying aside awaiting more confirmations for the next move.