Weekly Report 25/07 -29/ 07/ 2011

During the past week, the pair reached 38.90-80 many times and then rebounded to the upside. The pair is currently stable around 41.20, while consolidation below this level suggests a return of the downside trend, as explained on the first chart. But, on the second chart, we see the pair is stable above 40.40-35 suggesting the formation of the butterfly harmonic pattern, with first reversal zone around 41.70 and the second around 42.65, therefore the metal'smovement is confusing. Where with 4-hour closing below 39.75 the downside trend should return, but without this closing, we might see the pair reaching the potential reversal zones of the butterfly pattern, at least the first one. Finally, we prefer to stay neutralduring this week, awaiting more confirmations in our daily reports.

The trading range for today is among the key support at 37.05 and key resistance now at 43.85.

The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.

Previous Report

RecommendationBased on the charts and explanations above we recommend observing trading today awaiting more confirmations