Weekly Report 14/11 -18/ 11/ 2011

The pair declined before reaching around 0.9210 and completing the bearish Butterfly harmonic pattern. Currently, the pair is trading within critical levels, which are areas below the bottom of (X) point of the suggested harmonic pattern, however the pair is also trading above the top of (B) point of the pattern. The pair is trading now in areas around the exponential moving average 50 and also around the harmonic support level. Therefore, we remain neutral in our weekly report, where trading above 0.9060 is positive, while consolidation below 0.8900 negates the harmonic pattern and supports the downside movement to extend further.

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

Support0.89500.89000.88500.88100.8775
Resistance0.90300.90600.90800.91050.9185
RecommendationBased on the charts and explanations above we remain neutral awaiting more confirmations