Wednesday February 14, 2007 - 05:28:31 GMT
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FX-Strategy - www.fx-strategy.com
Daily Analysis for EURUSDPrice:
Resistance: 1.3054 ... 1.3070 ... 1.3092 ... 1.3127
Support: 1.3016 ... 1.3000 ... 1.2975 ... 1.2940
While 1.3000-16 supports we still see room for gains to 1.3081 and probably 1.3124-31
The move back above 1.2969generated a move all the way back to the 1.3035-43 area and this morning to 1.3054. Indeed, while the 1.3000-16 area supports there is still room for additional gains. We still need to be cautious around the 1.3070-81 area but once this breaks we feel the likely stalling point will be in the 1.3024-31 area which we see as capping. Next resistance is at 1.3174.
The correction from 1.2865 has been developing for a while now but we do feel an end is in sight with the 1.3081-1.3131 area still the likely stalling point. Only above sees 1.3195 and possibly 1.3296 again. (February 12th)
Gains have brought the bullish structure back into play as expected. We do feel that an eventual test of 1.3124-31 is likely and before that only a break of 1.3000 would lead to a deeper pullback towards 1.2970-80 at least and possibly back to the 1.2940 corrective low that could cause a correction. Next support is not until 1.2912 and more likely we would see a quick test of the 1.2865-76 lows.
We still wait for 1.3081-1.3120 but an earlier drop below 1.2912-40 suggests an earlier decline that should drop below 1.2865 for 1.2761-89 at least. Break of this area takes us to 1.2596. (February 13th)
ELLIOTT WAVE COMMENTS
The move to 1.2940 was a 61.8% retracement of what we feel is Wave â€“a- and thus we feel this will support for development of Wave â€“c- higher. We continue to note the 50% retracement at 1.3081 and also the 138.2% extension in Wave â€“c- at 1.3121.
Only below 1.2912-40 would suggest the correction is complete and thus Wave [c] will be under development.
It looks more likely now that we shall see Wave â€“c- completed on the topside with a wave equality target at 1.2092 and a 138.2% projection (and 61.8% pullback) at 1.3124-31 which we feel will cap.
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