Sunday January 16, 2005 - 22:59:17 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the British Pound vs U.S. Dollar 17th January 2005 Price:
Resistance: 1.8712 ... 1.8740 ... 1.8786 ... 1.8821
Support....: 1.8660 ... 1.8636 ... 1.8612 ... 1.8597
We suspect a dip down to 1.8597-1.8610 followed by a correction higher
We feel that a dip is likely to the 1.8597-1.8612 area which we feel should hold and allow a recovery higher that should move back above 1.8644 and onto the 1.8740-50 area. Only a direct break above 1.8712 would imply a slightly stronger initial move back to the 1.8786-1.8821 area. However, we feel this would hold. Further resistance is found at 1.8890-1.8936.
We find the current move a little confusing and therefore look to play on breaks. While 1.8712 holds we feel there is room for losses down to the 1.8597-1.8612 region but feel this should hold. Only a direct breaks below 1.8597 would trigger stronger direct losses down to 1.8532 which should be watched carefully and could provoke a reaction higher. Break of 1.8530 signals further strong losses.
Elliott Wave Comments:
17th January 2005
With the drop from 1.8936 to below 1.8644 we are considering a more bearish structure now. This will mean that 1.9548 will have completed the move higher and as such we are in a bearish decline. The initial drop to 1.8644 may well have completed Wave (iii) though we feel that this is more likely to represent Wave (a) of Wave (iii). We consider the correction to 1.8936 could well have completed Wave (iv) but with daily cycles finding a low around now we that it may have been Wave a of Wave (iv) which is occuring within a complex correction. This implies a flat, expanded flat or triangle and we need to proceed with caution until the pattern is more strongly developed.
(c) FX-Strategy Inc 2005
Disclaimer: Pro Commentary, FX-Strategy, FX-Strategy Pro Charts, and any related products or services, are analytical tools only and are not intended to replace individual research. The information provided here should not be relied on as a substitute for extensive independent research before making your trading/investment decisions. FX-Strategy is merely providing this service for your general information. No representation is being made that any software or training will guarantee profits or not result in losses from trading. The views are not necessarily those of FX-Strategy, its owners, officers, agents or employees. In addition any projections or views of the market provided may not prove to be accurate. FX-Strategy will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this service. Be sure to closely read and understand the risks of foreign currency trading as described on the FX-Strategy website.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."