Thursday November 3, 2005 - 00:43:21 GMT
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FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the Euro vs U.S. Dollar 3rd November 2005 Price:
Resistance: 1.2094 ... 1.2124 ... 1.2144 ... 1.2172
Support....: 1.2045 ... 1.2020 ... 1.2000 ... 1.1967
Having reached target we look for resumption of the downtrend to 1.1967 and lower
Upside target met and we feel that any bullish scenario should be put on hold. There is resistance at 1.2094 and at 1.2124 and only above this area will extend gains back to 1.2172 and probably higher to 1.2231. Any break below 1.2020 would negate any possible bullish scenario.
Price has reached the 1.2070-94 retracement target and we feel the downside should now come under pressure. A break below the 1.2045 pivot area will assist and below 1.2020 would confirm and allow a test and probable breach of the 1.1967 low. Next support is around 1.1920 and then the 1.1874-99 lows.
Elliott Wave Comments:
1st November 2005
The breach of 1.2023 has confirmed the 1.2172 peak as the completion of Wave [B]. This generates an equality Wave [C] target at 1.1458. This Wave [C] will complete Wave [v] from the 1.3666 peak at the beginning of this year and can generate a 61.8% target at 1.1474 and this area then becomes our favored target. For now we feel that the move to 1.1967 this morning has probably completed Wave -i- of Wave [C] and thus a 50%-61.8% pullback would imply a Wave -ii- at 1.2070-94. Once the Wave -ii- peak is confirmed we can generate a target for Wave -iii-.
3rd November 2005
Retracement target met and we now label the 1.2084 high as Wave -ii- and thus can derive targets for Wave -iii-. We note the following relationships:
Wave -iii- = 138.2% projection of Wave -i- at 1.1801
Wave -iii- = 161.8% projection of Wave -i- at 1.1752
Wave -iii- = 261.8% projection of Wave -i- at 1.1547
The 161.8% target rests around the last major weekly low at 1.1758 while we should also keep in mind the larger target at 1.1458-74 which could mean that an aggressive decline could reach 1.1547. We shall observe as price declines.
(c) FX-Strategy Inc 2005
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