Weekly Report 19/09 -23/ 09/ 2011

The pair rebounded slightly to the upside after reaching 23.6% Fibonacci correction of the Butterfly harmonic pattern, while Stochastic is turning positive. But, consolidation below the pattern's potential reversal zone at 0.8920 supports the return of the downside movement, especially after the pair failed to achieve any of the pattern's targets, which begin with 38.2% Fibonacci correction at 0.8460. The Relative Strength Index is close to oversold areas, which confirms our expectations.

The trading range for this week is among the major support at 0.8320 and the major resistance at 0.9190.

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

Previous Report

Support0.87800.87500.86400.86050.8535
Resistance0.88500.89200.90000.90400.9105
RecommendationBased on the chart and explanations above, we recommend selling the pair around 0.8850, and take profit in stages at (0.8640 and 0.8460) and stop loss with daily closing above 0.9000 might be appropriate