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Forex4you Technical Analysis 8 February 2011

Discussion in 'Forex Daily News & Outlook' started by forex4you, Feb 8, 2011.

  1. forex4you

    forex4you New Member

    Jul 13, 2010
    Likes Received:
    EUR/USD: structure analysis

    Let's analyse EURUSD dynamics. At the moment we have a slight indication for the centre of the structure. We've seen five descending waves, so it's most likely a downtrend impulse, isn't it?
    Every wave analyst knows a joke: if a kid has learned how to count to five - he has learned how to do a wave analysis .
    We have a tougher task - we need to consider this chart regarding general market (and even cross-market) picture, and project the right targets to define future trades. Besides that, the waves aren't ideal, so it's better to save about 20% of the marking for different kinds of deviations. You might not notice that red centre, if I didn't highlight it. But I did. Because this is today's most important benchmark.
    As for resistance levels, upper (dashed) bound and pivot level 1.3630 are the main price targets.
    The forecast for the structure will prove to be correct if red confirmation level is breached downwards.
    Should the price rise up to level 1.3680 and higher today, my forecast will no longer count.


    EUR/USD: technical analysis

    EUR/USD is currently correcting the wave down from the 2nd February highs. This correction is beginning to show signs of maturity, however, with a collection of shooting stars and spinning tops at the highs presaging a possible decline. The preceding bearish move looks like a textbook Elliot wave which coupled with yesterday’s correction might describe a complete cycle. This could suggest the onset of the next cycle down may be close at hand. Whilst it is still possible the corrective rally begun yesterday might rise higher – to perhaps the 50% Fibonacci retracement line at 1.3680 (which is also a key resistance level) it will probably eventually fall, initially perhaps to the support shelf at 1.3570 and then to match the recent lows at 1.3507 before going perhaps lower still.


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    #1 forex4you, Feb 8, 2011
    Last edited: Feb 8, 2011

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