Weekly Report 10/10 -14/ 10/ 2011

The pair mostly traded above 0.9185 during the past week, while this week the Exponential Moving Average 50 is approaching this level. Forming the Butterfly harmonic pattern is still valid, leading the pair towards 0.9420 through an extended upside movement, supported by consolidation above 0.9185. Stability below the Exponential Moving Average 50 at 0.9140 could weaken the upside movement.

The trading range for this week is among the major support at 0.8750 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

Support0.91850.91400.90800.90300.8920
Resistance0.92700.93000.93350.93700.9420
RecommendationBased on the chart and explanations above, we recommend buying the pair above 0.9210, and take profit in stages at (0.9335 and 0.9400) and stop loss with daily closing below 0.9140 might be appropriate