Sunday August 28, 2005 - 07:23:24 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the U.S. Dollar vs Swiss Franc 29th August 2005 Price:
Resistance: 1.2590 ... 1.2621 ... 1.2640 ... 1.2673
Support....: 1.2568 ... 1.2552 ... 1.2518 ... 1.2485
While 1.2617-21 could stall any initial gains we look for 1.2550-70 to support and for a move to the 1.2673 area
We saw the dip to the 1.2515-18 support as warned on Friday and a good reversal from there which we feel should form a base. There is initial resistance between 1.2590 and 1.2621 which should hold on any test early on Monday and cause a pullback. However, while this remains above the 1.2550-70 area we will expect to see further gains later which should breach the 1.2617-21 resistance and allow price to move towards the 1.2673 area which we expect to cap. Only above 1.2680 would see follow-through towards 1.2722 and 1.2750-60.
The 1.2515 support held well on Friday and we feel this should imply the end of the deep pullback. Thus a more bearish stance would require the 1.2617-21 area capping and for a reversal back below 1.2550 to provoke a further attack on the 1.2515-18 area. Breach there is required to extend losses to 1.2485 and possibly the 1.2432-44 lows.
Elliott Wave Comments:
26th August 2005
The pullback lower has broken the triple three structure and we can now only assume that the rally to 1.2785 was in fact a Wave a and that we are seeing Wave b come to a completion. Within this we see support at 1.2515-36 and on this basis we can expect wave equality in Wave c which should imply gains to 1.2864 at least. We also note the 76.4% retracement of the decline from 1.3080 at 1.2927 which often provides a barrier on retest.
29th August 2005
Little to add from Friday's comments except the decline to and recovery from 1.2515-18 appears to fit well within our larger picture of a sideways correction and we now see Wave c rallying towards the 1.2864-71 area but keeping in mind the 76.4% retracement of the decline from 1.3080-1.2432 which rests at 1.2927.
(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."