Wednesday December 29, 2004 - 00:46:57 GMT
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FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the Euro vs U.S. Dollar 29th December 2004 Price:
Resistance: 1.3639 ... 1.3678 ... 1.3692 ... 1.3724
Support....: 1.3581 ... 1.3567 ... 1.3550 ... 1.3522
We continue to look for 1.3567-1.3581 to support to generate a rally to 1.3672-92 before a larger pullback
Sideways consolidation with only a marginal new high did not clarify the picture yesterday and as we write the Euro has dipped to the 1.3580 level. However, we see support between 1.3567-80 and while this holds there is still room for a rally to the 1.3672-92 area where we expect a cap to develop and cause corrective losses. Only above 1.3724 would allow gains to extend towards 1.3796 at least.
We continue to feel the better selling opportunity should come on a test of 1.3672-92 later today. From this area we look for a corrrction to reach down to around 1.3500 though should allow for a move to 1.3440. Thus only directly below 1.3550-67 would allow earlier losses down to 1.3522 with next support seen at 1.3470 and 1.3422.
Elliott Wave Comments:
December 28th 2004
While there is a chance that the triangle ended at 1.3342 we actually prefer a more simple structure which calls for the 1.3138 low to have completed Wave [b] and thus a Wave [c] is now well into development. The target for Wave (iii) is around 1.3678-92 and a 38.2% - 50% correction should be expected there which implies support at 1.3500 and 1.3444 which should complete Wave (iv). From this retracement low look for gains in Wave (v). A target for Wave [c] can be seen at 1.3873 being 138.2% of Wave [a] and also a daily target at 1.3925.
(c) FX-Strategy Inc 2004
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