Tuesday March 20, 2007 - 05:28:58 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Daily Analysis for USDCHFPrice:
Resistance: 1.2146 ... 1.2168 ... 1.2186 ... 1.2215
Support: 1.2105 ... 1.2074 ... 1.2057 ... 1.2029
While 1.2168-86 caps we will look for a deep pullback towards the 1.2030-60 area
Gains seen as expected although these have broken above the 1.2124-38 resistance and we take this as bullish in the medium term. However, we suspect that a cap is due which should see a pullback that we feel may be quite deep. There is resistance at 1.2168-86 and suspect this may well be tested but only a break through this area would cause a stronger rally that should revisit the 1.2215 corrective high and possibly extend to the 1.2244 area which should cause a correction.
Yesterdayâ€™s gains appear to provide early confirmation of a reversal higher. We still need to see a move back through 1.2186 (and 1.2215) and once seen the upside should be stronger. (March 20th)
Although we have seen break above 1.2124-38 we cannot get too bullish at this stage but it does raise the risk that a major low has been seen. We note resistance at 1.2168-86 and while this holds we feel that a correction lower can be expected. A break below 1.2100 would cause additional losses which may well be deep and threaten the 1.2029 low again, but we look for this to remain intact.
With the 1.2026-29 target having been met we are cautious about the downside and only a break now of 1.2026 would extend the downside to 1.1929-45 at least and potentially 1.1878-98. (March 20th)
ELLIOTT WAVE COMMENTS
Target met and we prefer to see a recovery but need to allow for a deep correction back to retest the 1.2026-29 area again should EURUSD look to test the favored 1.3367-82 target. The reversal should first test the last Wave â€“b- at 1.2354.
The recovery looks useful but we note a minor internal projection between 1.2168-86 and feel this will form Wave â€“a- and therefore should be followed by a Wave â€“b-. We need measure potential retracement areas but given the target we have in EURUSD we may see this currency pair push quite deeply lower towards 1.2029-50.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."