Weekly Report 21/11 -25/ 11/ 2011
Last week, we detected a Butterfly harmonic pattern, and with the start of this week we recognize that the pattern is still effective and could force the pair to reverse to the downside towards the first target at 0.9050 at least. A breach of the mentioned level could support the downside movement to extend towards the second target at 0.8940, which represent 61.8% Fibonacci correction. Our negative expectations remain valid as long as the pair is stable below 0.9235.
The trading range for this week is among the major support at 0.8810 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, our opinion is selling the pair below 0.9185, and take profit in stages at 0.9050 and 0.8940 and stop loss above 0.9235 might be appropriate.|