Weekly Report 09/01 -13/01/ 2012
Stabilizingabove 0.9400 is very positive according to the harmonic rules, where this consolidation could trigger the extension of the upside move towards the second target of the Deep Crab harmonic pattern as shown above, where this target represents 61.8% Fibonacci correction of the CD leg at 0.9950. ADX indicator suggests the extension of the upside move with heavy fluctuation, while theRSI14 is still biased to the upside despite being close to overbought areas.
The trading range for this week is among the major support at 0.9235 and the major resistance at 0.9855.
The short-term trend is to the upside with steady weekly closing above 0.8020 targeting 0.9400.
**New York Candlesticks**
|Recommendation||Based on the chart and explanations above, our opinion is buying the pair above 0.9480, and taking profit in stages at (0.9590 and 0.9660) and stop loss with daily closing below 0.9400 might be appropriate. In case the pair reached the suggested stop loss point, our opinion is selling the pair around 0.9335 and taking profit in stages at (0.9235 and 0.9110) and stop loss with 4-hour closing above 0.9400 might be appropriate.|