Weekly Report 16/01 -20/01/ 2012

Despite the negative pressuresseen the pair last week, the level of 0.9400 was able to stop the negative momentum, where this level represents 50% Fibonacci correction of the CD leg of the Deep Crab harmonic pattern. Consolidation above this level suggests that the pair could extend the upside move towards 61.8% Fibonacci correction at 0.9950. The RSI approaches overbought areas, but we don't recognize any negative crossover signs. In addition, ADX and MACD are positively biased.

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 0.8850 targeting 0.9950.

**New York Candlesticks**

Previous Report

RecommendationBased on the chart and explanations above, our opinion is buying the pair above 0.9520, and taking profit in stages at (0.9660 and 0.9785) and stop loss with a daily closing below 0.9400 might be appropriate