Weekly Report 17-21/ 10/ 2011

The pair has continued its upside recovery from 1.5270, breaking above the suggested B point of the duplicated harmonic pattern as seen on the main chart. This positive weekly closing should bring more bullishness, but actually we do have two technical obstacles that force us to stay aside until we get better entry during this week:

Stochastic over daily studies reflects an obvious overbought case as seen on the first secondary image and this sign may bring pullback this week.

The negative divergence on the four-hour time scale as seen on the second subsidiary graph.

A break back below 1.5780 with a daily closing will bring the negative picture of resuming the CD leg of the harmonic structure back into focus.

The trading range for this week is among key support at 1.5330 and key resistance at 1.6190.

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

RecommendationBased on the charts and explanations above our opinion is, staying aside until an actionable technical setup presents itself to pinpoint the next big move.