Tuesday January 15, 2008 - 04:01:18 GMT
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Daily Analysis for EURUSD
||Momentum looks strong and appears to suggest follow-through to 1.4966-74|
||Breach of the 1.4823 high indeed provoked follow-through to the 1.4913 perfectly from where we have seen a correction. I suspect that since momentum looks quite firm that we should see additional gains today. Watch support at 1.4850 and then 1.4810-20. While these remain intact the risk still appears to be higher for 1.4966-74 â€“ but take are as this should cause a small pullback. Next resistance is then found at 1.5016-31.|
||We have seen price reach 1.4913 with momentum favoring breach for 1.4966-74 at least. We should also beware of the old daily support line which is now just around 1.5100-20. (15th January)|
||The 1.4913 target was reached without causing a bearish divergence and thus we need to be careful about expecting too much in the way of weakness. Back below the 1.4810-20 pivot area would appear to suggest additional losses. If seen then look for the downside to progress towards 1.4730-60 and if this breaks then to 1.4638.|
Yesterdayâ€™s move higher may have more bullish implications with the only risk being that we are seeing a large flat correction. Only now below 1.4730-60 would undermine the structure for 1.4550-80 initially. (15th January)
ELLIOTT WAVE COMMENTS
Price reached the 76.4% projection at 1.4913 but there are no bearish divergences. Thus we should expect a retest of the 1.4966-74 area being the old higher together with a 138.2% projection in Wave iii.
However, we should also be aware of the possibility of a flat correction that would see a peak at 1.4966-74. I very much doubt it, but keep it in mind.
Normally, even in a new move higher we would expect a reaction from somewhere close to the old high.
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