Monday July 4, 2005 - 23:31:50 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 5th July 2005 Price:
Resistance: 1.7617 ... 1.7655 ... 1.7690 ... 1.7710
Support....: 1.7569 ... 1.7540 ... 1.7505 ... 1.7483
We look for 1.7540-70 to support for a larger pullback
Losses have been far stronger than expected but with momentum conditions slowing we feel that the 1.7540-70 area should be the maximum downside we see with more potential for gains through the 1.7617 corrective high which should then cause follow-through towards 1.7650-55 and possibly as high as 1.7680-90. However, this broad area should cap on the day. Further resistance is found at 1.7710 & 1.7747.
While we had anticipated losses these have been far stronger than expected. However, we do note that FXS-RSI is displaying potential for a bullish divergence and we tend to feel that the downside is now limited for today. Indeed, the 1.7569 level may well hold, but only a move below 1.7535-42 would allow losses to continue down to 1.7483 and possibly the weekly low at 1.7450.
Elliott Wave Comments:
5th July 2005
Losses have been much stronger than expected and we have adjusted the wave count slightly to show the 1.8314 high as the completion of a triangular Wave [iv]. Indeed, the losses from there appear to have come in five waves and thus we expect a pullback with potential corrective levels at 1.7747-73 (33.33%-38.2%) and 1.7790-1.7842 (41.4%-50%). We note a potential Wave[v] target at 1.7360.
(c) FX-Strategy Inc 2005
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