Weekly Report 12/12 -16/ 12/ 2011

The pair attempted to settle below the Exponential Moving Average 50, but all the provided attempts failed, where the pair is currently trading above 0.9235 but also below the suggested D1 point of the bearish Butterfly harmonic pattern. A breach of 0.9180 and stability below it could bring our negative outlook back, supported by the overbought signs seen on Stochastic, but consolidation above 0.9305 could trigger an upside move towards point D2 at 0.9400. Therefore, we remain neutral in our weekly report and we recommend reviewing our next reports, awaiting further confirmations.

The trading range for this week is among the major support at 0.8880 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.

Previous Report

RecommendationBased on the charts and explanations above we remain neutral, awaiting more confirmations