Pro Commentary Lite ... 14th December 2007 ... USDCHF

An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 1.1422
[B]Resistance:[/B]1.14511.14741.15151.1553[B]Support:[/B]1.14001.13821.13551.1300

[B]Bias:[/B]Only above 1.1451 extends towards 1.1509-21 and 1.1596 else below 1.1350-60 sees 1.1234-45
[B]Daily Bullish:[/B]The 1.1301-22 support held with just 4 points slippage and from there we have seen a move to the 1.1444 target and a little above. There is still (just) a bearish divergence in the 4-hour market, but hourly does seem quite strong. Thus be aware of follow-through – but only react on a break above yesterday’s 1.1451 high. If seen then the upside should extend further towards 1.1509-21 and after a correction the overall target would appear to be around 1.1596. [B]MT Bullish:[/B]While we have only seen 7 points above the 1.1444 target, momentum is still bullish. Therefore any breach of 1.1451 would imply a move to 1.1596 minimum. Above implies 1.1690-00. ([B]14th December[/B])[B]Daily Bearish:[/B]Having reached the 1.1444 target we still have to be careful since momentum still looks bullish. Thus we should wait for break of initial pivot support at 1.1400 which would then spur a decline to 1.1350-60 at least. Again, breach of this support encourages a more bearish stance for 1.1300, 1.1261 and then the 1.1234-45 area which should provide a reaction higher. Stronger support is at 1.1167. [B]MT Bearish:[/B]We are at a critical juncture and the 1.1451 high now needs to hold to generate any meaningful correction lower. If seen then watch 1.1234-45 initially then 1.1234-45 and stronger at 1.1153-67. ([B]14th December[/B])

[B]ELLIOTT WAVE COMMENTS[/B]

[B]14th December[/B]

Well, we have achieved the 76.4% projection in Wave v at 1.1444. Thus yesterday’s high must hold to count this as a complete Wave (i) higher and imply a 50% retracement (at least) in Wave (ii) at 1.1153-67 which is close to the prior Wave iv.

However, momentum is strong and any break above 1.1451 could mean that the rally to 1.1352 was a Wave (a) and the correction to 1.1153 was Wave (b). This would imply a minimum wave equality target at 1.1596.
[B]Ian Copsey[/B]
[B]See Also[/B]

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