Thursday April 12, 2007 - 05:01:31 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Daily Analysis for EURUSDPrice:
Resistance: 1.3470 ... 1.3510 ... 1.3540 ... 1.3559
Support: 1.3440 .. 1.3406 ... 1.3383 ... 1.3339
The 1.3470 resistance provides the key to any further gains
The upside did make progress yesterday but not too convincingly with a test just short of the key 1.3470 resistance this morning. This is a critical point. A break above here would see gains follow-through towards 1.3540-60 at least where we need to take care and probably over time to 1.3616. Next major resistance is at the 1.3666 high.
Having reviewed the long term cycles and wave structure we feel there is no room for a move back to 1.2865 and thus this rally should remain above 1.3240-50 for a test of 1.3666 which should cap. (April 12th)
Gains are being seen steadily. Due to the rather erratic nature of the gains since the 1.3253 low we feel the 1.3470 level should cap and cause a reversal lower. Confirmation will come on a break below 1.3406 and if seen would extend the downside to the 1.3313-39 area at least.
The 1.3470 resistance is crucial and while this caps there is risk of a second test back down to the 1.3240-53 area. However, if seen this should provoke a rally again. Any earlier test of 1.3666 should be sold.
ELLIOTT WAVE COMMENTS
We have come to a critical point. The 1.3470 level represents a 38.2% expansion of the 1.3410-1.3253 decline. Should the 1.3470 level cap then it would imply a move back down to the Wave efa 1.3253 low again with the 50% retracement in Wave â€“iv- lying at 1.3241. This would then cause a final rally in Wave â€“c- to the 1.3666 weekly high which is expected to cap.
Any earlier break above 1.3470 would imply a direct rally to test the 1.3666-68 being a 76.4% projection in Wave â€“v- and where the major high on the 31st December 2004 lies.
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."