Pro Commentary Lite ... 26th November 2007 ... EURUSD

An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 1.4811
[B]Resistance:[/B]1.48581.48961.49231.4966[B]Support:[/B]1.47831.47451.47181.4686

[B]Bias:[/B]Cautiously, while 1.4845-58 caps I see more potential for losses to reach 1.4718-45
[B]Daily Bullish:[/B]Friday’s rally stalled mid way between the 1.4945 and 1.4985 upside targets and I therefore suspect the entire rally is complete. Only a move back above 1.4845-58 would provide a stronger bullish signal and if seen would then revert to a bullish structure that should then revisit the 1.4896-1.4923 resistance and if breaks then look for extension through 1.4966 for 1.4982-1.5002 at a minimum. Next resistance is at 1.5036 and 1.5114.[B]MT Bullish:[/B]Gains have moved above the 1.4805-20 target but there are a few more that should contain price and I suspect this should be at 1.4910 and at most 1.4997-03. ([B]21st November[/B])[B]Daily Bearish:[/B]The reversal from 1.4966 is encouraging although there was no bearish divergence within the hourly chart. However, the reversal has been solid and while there is a risk of a pullback to 1.4845-58 while this caps the downside risk remains. It would be useful to see a breach of the 1.4583 low which would then imply losses to the 1.4718-45 area. Take care as this could cause a pullback higher. Breach sees follow-through to 1.4686, 1.4620 with the bigger target being around the 1.4580 corrective low.[B]MT Bearish:[/B]The peak is looking more like being at 1.4910 and maximum 1.5003. There are bearish divergences across the board with the first pullback likely to reach the 1.4580-1.4620 area. ([B]21st November[/B])

[B]ELLIOTT WAVE COMMENTS[/B]

[B]23rd November[/B]

Price has broken easily above the 1.4910 resistance and this opens up the next targets being the 66.7% projection in Wave v at 1.5010 which also matched a weekly Wave (v) target at 1.5002.

Also note the 76.4% projection at 1.5082.

In this process look for the hourly chart to generate a bearish divergence and a break of the last significant low. At the moment this looks like the 1.4775 corrective low.

[B]26th November[/B]
The 1.4966 level was very close to a 66.7% projection in Wave v and also meets long term projected targets also. I therefore suspect a move back to the last Wave b at 1.4580. Only back above 1.4966 sees 1.5003 at least being a weekly 61.8% target.
[B]Ian Copsey[/B]
[B]See Also[/B]

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[li]FX-Strategy Pro Commentary[/li]Powerful analysis for profitable trading[/ul]