Weekly Report 07/11 -11/ 11/ 2011

The pair returned to trade above 0.8850, which drive us to review our weekly chart that shows the Deep Crab harmonic pattern mentioned before. Consolidation above the pattern's first target, which represents the mentioned level, could lead us to expect the pair to provide another bullish attempt, targeting 50% Fibonacci correction of the CD leg of the pattern, and maybe the pattern's second target, which represents 61.8% Fibonacci correction, where these levels are at 0.9400 and 0.9950 respectively. Consolidation above 0.8720 with a daily closing is necessary for our bullish outlook to remain valid, while stability above 0.8850 is much better for us.

The trading range for this week is among the major support at 0.8505 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

Support0.89050.88500.88100.87750.8720
Resistance0.89200.90300.90800.91050.9185
RecommendationBased on the chart and explanations above, we recommend buying the pair around 0.8850, and take profit in stages at (0.9080 and 0.9270) and stop loss below 0.8720 might be appropriate