Weekly Report 16/01 -20/01/ 2012

After placing a new short term low at 1.5230 on Friday, the pair started to consolidate where we can see the previous week's closing was achieved comfortably below X2 point of our duplicated harmonic formation over weekly basis. This duplicated harmonic structure suggests:

A harmonic Butterfly pattern starting from X2 point.

A harmonic Bat pattern starting from X1 point.

The bearishness is still favored since the CD leg of our caught pattern is still in progress supported by the negativity appearing on Stochastic.

The trading range for this week is among key support at 1.4975 and key resistance at 1.5680.

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 1.5360 targeting 1.5075 and stop loss above 1.5555 might be appropriate.