Weekly Report 31/10 -04/ 11/ 2011

The pair is stable below the exponential moving average 50 at 0.8875, but also above 38.2% Fibonacci correction of the CD leg of the bearish Butterfly harmonic pattern. Stochastic is positive, but the Relative Strength Index is still negative. All these factors together drive us to remain neutral, awaiting a breach of the mentioned correction at 0.8995 or the level of 0.8770.

The trading range for this week is among key support at 0.8310 and key resistance at 0.9030.

The general trend over short term basis is to the upsidetargeting0.9400as far as areas of0.8020areas remain intact.

Previous Report

Support0.86950.86750.86050.85800.8550
Resistance0.87750.88500.89300.90300.9080
RecommendationBased on the chart and explanations above, we remain neutral awaiting further confirmations.