Weekly Report 12/09 -16/ 09/ 2011

The pair is presently achieving normal pullback due to facing 38.2% Fibonacci retracement of the entire downside rally from 80.20 to 75.90. This mild recovery was needed to relieve momentum indicator and we believe that it will be limited in the areas between 77.20 and 76.95 before moving higher once more to complete the suggested Elliott sequence. Moreover, we can see the potential head and shoulders bottom pattern which took long time to be formed; thus, it may cause a price explosion to the upside and that will match the IM -impulsive- nature of C wave. Ultimately, the bullishclassical pattern will be valid as far as areas of 75.90-75.80 remain intact.

The trading range for this week is among key support at75.25 and key resistance now at 80.05.

The general trend over short term basis is to the upsidetargeting 87.45 as far as areas of 75.20 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying the pair around 76.95 targeting 78.80 and stop loss below 75.80 might be appropriate.