Wednesday December 20, 2006 - 05:54:59 GMT
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Daily Analysis for EURUSD
Resistance: 1.3251 ... 1.3275 ... 1.3303 ... 1.3327
Support: 1.3187 ... 1.3170 ... 1.3135 ... 1.3089
The rally should remain above 1.3185-90 to maintain the uptrend to 1.3298-07 & later higher
The 1.3070-77 support remained intact to generate a rally that has exceeded 1.3204-13. This should mean that the 1.3195-00 area should continue to support and allow gains to extend towards 1.3251 initially and probably later to 1.3298-07 where we should get a pullback. Resistance is then found at 1.3327 and 1.3367.
We should now see this rally complete around the 1.3367 high from where we should expect a pullback before price can test 1.3440 minimum and possibly 1.3514. (December 20th)
The gains should keep any downside movement restricted to corrections only. Watch resistance at 1.3251 and then 1.3298-07 both of which could cause pullbacks. Any stronger bearish stance will require a break below 1.3195 and then 1.3130-40. Next support then found at 1.3089.
Price held the 1.3051 level and thus we feel there should be a brief chance for a short positions around the 1.3367 high but only for a correction. Thus only below 1.3089-1.3113 would trigger stronger losses. (December 20th)
ELLIOTT WAVE COMMENTS
The expected gains have been seen and we therefore count the 1.3051 low as Wave iv and can generate targets for Wave v at 1.3440-55 at least where Wave C will have extended by 161.8% and Where Wave v will have extended by 66.67%. Also note the 76.4% Wave v projection at 1.3514.
First move should be close to the 1.3367 high in Wave a followed by Wave b and then a Wave c rally into mid January to the targets mentioned.
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