Weekly Report 26/09 -30/ 09/ 2011

The pair is still trading positively, affected by the mentioned harmonic structure, while the pair is currently trading above the structure's first target, which represents 38.2% Fibonacci correction at 0.8850. Therefore, the upside move could extend this week; however, a downside correction is possible before the pair rebounds to the upside.

The trading range for this week is among the major support at 0.8850 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

RecommendationBased on the chart and explanations above, we recommend buying the pair around 0.9035, and take profit in stages at (0.9230 and 0.9400) and stop loss with daily closing below 0.8920 might be appropriate.