Friday July 22, 2005 - 01:16:09 GMT
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Forex: Daily Forecast for the Euro vs U.S. Dollar 22nd July 2005 Price:
Resistance: 1.2185 ... 1.2220 ... 1.2255 ... 1.2283
Support....: 1.2154 ... 1.2120 ... 1.2097 ... 1.2065
Mixed - waiting for breaks - probably range trading
A peak seen at 1.2250 and this does tend to imply a more bullish underlying pattern. However, we do not want to get too bullish too quickly with the risk of a sideways movement quite possible today. There is resistance at 1.2215-20 that needs to be overcome to reach back to the 1.2250-55 peaks. Resistance is also seen at 1.2283-86 and only above this area would keep the upward momentum intact and cause follow-through to 1.2342 at least and we suspect 1.2377.
The pullback from the 1.2250 high stalled at 1.2097 and we feel that may well be the limit of the downside. To see a more bearish tone today we would require a break back below 1.2120 and if seen would then pressure the 1.2097 low and probably cause follow-through to 1.2065 but feel this should hold. Next support is at 1.2022 & 1.1995.
Elliott Wave Comments:
22nd July 2005
We consider the rally to 1.2250 from 1.1951 occurred in five waves. Thus we now count the 1.1951 low as Wave x, the rally to 1.2250 as a new Wave a and thus we are seeing Wave b. It is possible this completed at 1.2097 but we feel this Wave b correction could be quite complex. However, once we see a break higher we'll be looking for a test of the 1.2460 pivot resistance and the 1.2480-90 area which is where daily Wave (iv) will have retraced 38.2% of Wave (iii) lower.
(c) FX-Strategy Inc 2005
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