Weekly Report 12/09 -16/ 09/ 2011

The pair has collapsed during the past week, respecting our previous efficient harmonic analysis over the daily basis -check the previous report- and now, it becomes very close to the PRZ of the previous suggested harmonic butterfly pattern at 1.5780. This level represents the neckline of the potential double top pattern formed over weekly studies for the upside rally from 1.4225 as seen on the provided chart. Thus, touching this level will cause fluctuation, but the bigger time weekly frames could beat the daily basis due to the negativity on the candlestick pattern and the bearish sign on Stochastic. Consequently, we recommend joining the classical bearish trend after itclears 1.5780 zones.

The trading range for this week is among key support at 1.5475 and key resistance at 1.6250.

The general trend over short term basis is to the downsidetargeting 1.4225 as far as areas of 1.6875 areas remain intact.

Previous Report

Support1.57801.56901.56551.55151.5475
Resistance1.59351.60001.61051.61901.6250
RecommendationBased on the charts and explanations above our opinion is, selling the pair below 1.5780 targeting 1.5475 and stop loss above 1.6000 might be appropriate.