Friday October 21, 2005 - 00:37:10 GMT
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Forex: Daily Forecast for the Euro vs U.S. Dollar 21st October 2005 Price:
Resistance: 1.2039 ... 1.2066 ... 1.2093 ... 1.2124
Support....: 1.1956 ... 1.1938 ... 1.1899 ... 1.1874
There is still resistance at the 1.2060-72 area which if cleared will allow follow-through to 1.2124-52
Gains have been seen and these should move through to the 1.2060-72 area at least. This area is key to continued gains and we may see a pullback from here. However, while this remains above the 1.2000-10 area we should see eventual break to take price to 1.2124 and possibly 1.2152 but from this broad resistance area we do anticipate a pullback. Next resistance is at 1.2203 and 1.2244.
We are seeing the gains as expected and this morning these appear to be heading for the 1.2060-72 area. If there is any chance of a larger decline then this area needs to cap. We do feel a pullback is possible from there at the very least but a stronger decline requires a move below 1.2000-10 and if seen should allow follow-through to the 1.1899-1.1912 area once again.
Elliott Wave Comments
20th October 2005
The reversal from 1.1874 was not expected but has been deep enough to suggest further strength should be seen. The only threat to the expanded flat correction pattern we have been following is that the 1.2203 high did, in fact, complete Wave [B] and thus we have seen a move down to 1.1874 in Wave [i] of Wave [C]. However, even this would imply a retracement back to 1.2062-67 and this is the key resistance to confirm whether continued strength to 1.2203-44 will be seen.
21st October 2005
We have adjusted the wave count to label the 1.1874 low as Wave -b- of an expanded flat. We are seeing the test of the 1.2060-72 area which could be counted as Wave [ii] within a more bearish stance and therefore this area is critical. On balance we still feel the expanded flat has greater chance and we look for a move through to 1.2124-52 initially and later to 1.2203-44 to complete Wave [B].
(c) FX-Strategy Inc 2005
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