Weekly Report 03/10 -07/ 10/ 2011

The pair is currently trading above 0.9105, but also below 0.9185. The recent upside movement doesn't negate the suggested bearish harmonic structure, yet it weakens the structure, where stability below 0.8980 and then a breach of 0.8920 is required to confirm the downside movement; however, trading above 0.9185 could trigger a test of levels around 0.9420 before any bearish movement. Therefore, we remain neutral for now, awaiting a breach of 0.9185 to confirm the upside movement, or a breach of 0.8920 to confirm the downside movement, especially with the technical conflict seen on momentum indicators.

The trading range for this week is among the major support at 0.8835 and the major resistance at 0.9420.

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

Previous Report

Support0.90800.90350.89800.89200.8880
Resistance0.91500.91850.92300.93350.9400
RecommendationBased on the chart and explanations above, we recommend buying the pair with 4-hour closing above 0.9185, and take profit in stages at (0.9230 and 0.9400) and stop loss with daily-closing below 0.8920, Or selling the pair with 4-hour closing below 0.8920 and take profit in stages at (0.8835 and 0.8620) and stop loss with daily closing above 0.9105 might be appropriate today