Weekly Report 29/08 -02/ 09/ 2011
The pair stabilized above 0.8020, awaiting consolidation above 0.8170, which represents 23.6% Fibonacci correction of the CD leg of the Deep Crab harmonic pattern. Technical signals seen on medium and long-term time frames suggests more upside actions, where ADX negative momentum weakened, while RSI confirmed the positive turnover. Therefore, we expect an upside trend to control the pair's movement this week. Heavy fluctuation along with downside corrections are possible, but stability above 0.7950 should keep our expectations valid, while we negate our expectations on intraday basis in case stability below 0.7815 is seen.
The trading range for this week is among the major support at 0.7665 and the major resistance at 0.8350.
The short-term trend is to the upside with steady weekly closing above 0.6980 targeting 0.8815.
|Recommendation||Based on the chart and explanations above, we recommend buying the pair around 0.7950, targeting 0.8350 and stop loss with daily closing below 0.7800 might be appropriate.|