Weekly Report 17-21/ 10/ 2011
The pair is stable in areas around 23.6% Fibonacci correction of the CD leg of the bearish Butterfly harmonic pattern. According to harmonic analysis, the pattern's first target is at 38.2% Fibonacci correction, which is located in our case at 0.8695. The pair is currently stable below the Exponential Moving Average 20, which could support the downside movement to extend. Momentum indicators are turning positive, while stability below 0.9185 is required to relieve this positivity, while consolidation below the moving average at 0.9040 is much better for our negative expectations.
The trading range for this week is among the major support at 0.8505 and the major resistance at 0.9370.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
|Recommendation||Based on the chart and explanations above, we recommend selling the pair around 0.9030, and take profit in stages at (0.8930, 0.8850 and 0.8700) and stop loss with 4-hour closing above 0.9185 might be appropriate this week|