Tuesday May 10, 2005 - 01:17:53 GMT
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Forex: Daily Forecast for the Euro vs U.S. Dollar 10th May 2005 Price:
Resistance: 1.2880 ... 1.2915 ... 1.2948 ... 1.2962
Support....: 1.2820 ... 1.2807 ... 1.2767 ... 1.2730
Although there is minor risk of a test of 1.2880-1.2915 we feel today should see losses below 1.2800
With the 1.2793-1.2806 seeing only a minor breach the correction has moved into our 1.2864-84 targeted resistance area. We feel this may have completed the correction and thus we do not favor a bullish view today and would only alter this should first 1.2880 and then the 1.2915 pivot resistance break. If seen then we should expect gains to extend towards 1.2962-96 which should limit the recovery for today.
We have seen the anticipated pullback to the 1.2864-84 area and this should have completed the correction. We can only identify one small risk of a further attempt higher but which should stall between 1.2884 and 1.2915. Thus, while this area holds or on a break of 1.2807-20 we look for losses to move down to 1.2767 at least and we suspect the 1.2720-30 level but expect this to hold on first attempt. Furher support is then found at 1.2683.
Elliott Wave Comments:
5th May 2005
With the Wave b at 1.2978 holding we are quietly encouraged with the view that the decline should continue towards the 1.2767 level at least and favor a decline as deep at 1.2683. Thus we have marked yesterday's high as Wave x and will look for a final ABC pattern lower to complete the decline from 1.3124. A flat correction is implied at 1.2767 though with the anticipated Triple Three it would tend to favor an expanded flat which should see 1.2730 minimum and probably 1.2683.
9th May 2005
Last week's marginal breach of 1.2978 was a bit annoying but we have seen our preferred larger count remain intact and we continue to feel that the decline from 1.3124 can be counted as an expanded flat Wave (b) of of Wave -ii-. Two targets can be derived from this pattern, the first being at 1.2683 being a 23% expansion of Wave (a) and then at 1.2631 being a 38.2% expansion of Wave (a). Thus these remain our tentative targets with the only risk being for a flat correction with low expected around 1.2767.
(c) FX-Strategy Inc 2005
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