January 19, 2012 3:40:57 PM by
Peter
EURUSD 1.2850
TradingLevels: The old high is SG2 12872 zone is also the resistance again, because of the five waves up from the last low 12625 area, the US Dollar also has five waves down
Elliott wave: The Impulse wave up from 12625 last low can be Wave C of 4 or a new positive uptrend is starting, so the five waves up can be a Wave 1 if this is correct then expect and abc correction down into the 128 and lower before moving up, if the top is a Wave C of 4 then we will see an Impulse wave down making new lows under the 1.26
Day Trading: allow the current high to pull back into the 128 let’s see if it’s a abc or impulse pattern, then we will know the next trend direction, I would expect it to run up on the back of the next ECB meeting
Strategy, the trend is moving up, so trade the sublevels up, support on 1.2850 is the next step, if support is found then take part profit at 12865 and the rest at 12872, if the 12872 becomes support move back in and add on 12880 support trade to 129 exit
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