Weekly Report 27/06 -01/ 07/ 2011

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The decisive closing below 100% Fibonacci retracement or rather the full correctional level of CD leg for our efficient bearish harmonic butterfly pattern is considered to be another negative indication for resuming the southern journey of touching the extended technical objectives of the pattern. Actually, closing below the lower line of Keltner channel could be a sign that the pair is oversold and that is clear on Stochastic too, thus; we believe that the pair may fluctuate before moving downwards once more during this week. Carefully note that, breaching through 127.2% projection of CD leg at 127.35 will bring panic sell-off actions towards 161.8% level and that is highly anticipated due to the negativity appearing on Vortex indicator which reflects the strength of the bearish trend.

The trading range for this week is among key support at 123.90 and key resistance at 133.80.

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 129.10 targeting 124.60 and stop loss above 132.00 might be appropriate.