Weekly Report 12/09 -16/ 09/ 2011

The suggested harmonic structure derived from the Deep Crab pattern (which differs from the ideal pattern by reaching 200% correction of CD leg) supported the pair to reach the first target at 0.8850. Currently, the pair is trading slightly above the mentioned level, and according to the harmonic analysis, this could lead the pair to extended the upside movement towards 61.8% Fibonacci correction at 0.9950. But, the long candle seen during the past week could cause a downside correction before the awaited incline, which could lead the pair to trade below the mentioned target. Therefore, we remain neutral today and also recommend reviewing our coming reports.

The trading range for this week is among the major support at 0.8170 and the major resistance at 0.9400.

The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.

Previous Report

Support0.88500.87800.87500.86750.8605
Resistance0.89000.89450.90000.91050.9190
RecommendationBased on the charts and explanations above we remain neutral awaiting more confirmations