Weekly Report 06/06 -10/ 06/ 2011

Click on the image for a larger view


The pair retraced mildly after touching the support of 88.6% Fibonacci of the CD leg of our efficient bearish harmonic butterfly pattern as seen on the provided daily graph and we recommend reviewing the previous report to see how we expected this slight recovery. Now, we see stochastic overlapping positively below the broken correctional trend line and that might cause a retest of this trend line from below before resuming the downside trip initially targeting 100% of CD leg at 130.00 zones followed by 127.35 areas since Fibonacci levels are falling one after another. The weekly candlestick pattern is another bearish sign which encourages us to suggest potential downside move during this week.

The trading range for this week is among key support at 126.70 and key resistance at 136.80.

The general trend over short term basis is to the downside, targeting 118.80 as far as areas of 150.75 areas remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 132.50 targeting 128.40 and stop loss above 135.00 might be appropriate.