Wednesday October 26, 2005 - 01:23:30 GMT
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FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the U.S. Dollar vs Swiss Franc 26th October 2005 Price:
Resistance: 1.2777 ... 1.2802 ... 1.2831 ... 1.2850
Support....: 1.2742 ... 1.2705 ... 1.2680 ... 1.2669
While 1.2777 caps there is risk for a dip to 1.2705 before a larger pullback
Loss of 1.2848-64 triggered sharp losses which have reached 1.2742 thus far. We feel that a move down to 1.2705 is likely and should provide a buying opportunity (stops below 1.2680) for a return back above 1.2742 & 1.2777 and to the 1.2815-45 area. However, we look for this to cap. Thus only an earlier break above 1.2777 would cause the pullback sooner than expected but we'd look for 1.2845-65 to cap. Only above this latter resistance would allow a return to 1.2880-1.2908.
The breach of the 1.2848-64 support triggered follow-through that has reached 1.2742 thus far. While 1.2777 caps we feel we could see further downside which should move below 1.2742 and to the 1.2705 level (max 1.2680). However, any stronger bearish stance would require a break of 1.2680 which would imply an earlier test of 1.2639. Next support is at 1.2556-70.
Elliott Wave Comments:
26th October 2005
The breach of 1.2802-23 appears to place us back in the scenario calling for an expanded flat correction from 1.3042. The decline from the Wave -b- peak at 1.3073 is a little difficult to interpret but we suspect a Wave iii move to 1.2705 from where Wave iv should produce a pullback to 1.2815-45. From this corrective peak look for losses down to the 50% retracement for Wave [B] at 1.2639.
(c) FX-Strategy Inc 2005
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