Friday October 7, 2005 - 00:39:36 GMT
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Forex: Daily Forecast for the Euro vs U.S. Dollar 7th October 2005 Price:
Resistance: 1.2213 ... 1.2235 ... 1.2274 ... 1.2303
Support....: 1.2146 ... 1.2117 ... 1.2077 ... 1.2036
While 1.2146 supports we look for gains to the 1.2235-75 area which should cap
Yesterday's gains turned out to be far more aggressive than expected but do fit in with our weekly view. Today we see the current correction holding the 1.2146 area and allowing further gains to develop above the 1.2203 peak seen so far with a likely target at 1.2235 though we should allow for 1.2275. However, we feel this will complete the correction from 1.1899 and allow the downside to come under renewed pressure.
Yesterday proved to be a much stronger day than expected but has brought us closer to the upside limit of this correction from 1.1899. Still, we feel we should hold back for a little longer and target the 1.2230-35 area to sell with stops to be placed above 1.2280. We expect this to cap nad generate further downside pressure. An earlier direct loss of 1.2117 would confirm immediate losses with 1.2070-85 providing first support and 1.1991 thereafter.
Elliott Wave Comments:
4th October 2005
The 1.1897 level has been an identfied potential target for some while, implied by Wave (iii) being 261.8% of Wave (i) and it also happens to be a possible 76.4% projection in the alternative count in Wave (v). It is common for the first Wave -a- in Wave (v) to reach the area of the previous Wave (iii) extreme - this being at 1.1864 and therefore we could accept either count - the only possible difference being the extent of the pullback. For now, however, we look for a pullback either in Wave (iv) to 1.2113-1.2179 or in Wave -b- to the same area and possibly as high as 1.2241.
7th October 2005
The break above 1.2178 appears to confirm the move lower from 1.2588 to 1.1899 came in five waves with the low market as Wave [A] of daily Wave (v). A 50% pullback rests at 1.2244 while internal relationships suggest a peak in the 1.2235-75 area. Thus we feel this will form the peak of Wave [B] or, if this Wave [B] turns complex, Wave a of a more complex structure. First we need observe the reaction in the anticipated resistance area.
(c) FX-Strategy Inc 2005
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