Weekly Report 28/11 -02/ 12/ 2011
Consolidation above 0.9235 negates the first reversal point (D1) of the suggested Butterfly pattern, which suggests testing the second reversal point (D2) at 0.9400. But at the same time, Stochastic is negative, which could support the pair to decline again in attempts to settle below the first reversal point in order to confirm the completion of the Butterfly pattern. Therefore, we remain neutral as long as the pair is stable in the current levels, awaiting further confirmations.
The trading range for this week is among the major support at 0.8940 and the major resistance at 0.9560.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
|Recommendation||Based on the charts and explanations above we remain neutral, awaiting more confirmations|