Weekly Report 23/01 -27/01/ 2012

The upside move seen was limited in areas below the bottom of the suggested (B) point of the harmonic structure, which became effectiveafter breaching the level of 0.9400. Stochastic is currently within overbought areas, while RSI failed to remain positive and breach the 50-point level. Therefore, we expect the downside movement to return, as the pair is still forming the CD leg of the suggested harmonic structure shown above. Consolidation below 0.9485 is essential for our expectations to remain valid.

The trading range for this week is among the major support at 0.9125 and the major resistance at 0.9660.

The short-term trend is to the upside with steady weekly closing above 0.8850 targeting 0.9950.

**New York Candlesticks**

Previous Report

Support0.93650.93400.93050.92250.9195
Resistance0.93850.94050.94850.95250.9590
RecommendationBased on the chart and explanations above, our opinion is selling the pair below 0.9385, and taking profit in stages at (0.9305 and 0.9225) and stop loss with a 4-hour closing above 0.9485 might be appropriate