Weekly Report 03/10 -07/ 10/ 2011

The pair started the week showing obvious bearish tendency as same as it closed the previous where it stabilized below the previous detected support-turned into resistance- at 1.5555. The secondary image of the daily basis shows how it formed consecutive reversal candlesticks indicating that the upside recovery started at 1.5330 zones might have been limited already and it is on the way to resume drawing the CD leg for the potential double harmonic pattern which consists of huge Crab pattern and a smaller Bat pattern as seen on the major weekly graph. A break of 1.5330 will trigger panic selling interests over upcoming period. To conclude, the bearishness will be in favor during this week as far as areas of 1.5780 remain intact.

The trading range for this week is among key support at 1.5075 and key resistance at 1.5820.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5555 targeting 1.5180 and stop loss above 1.5780 might be appropriate.