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EURUSD Fails after Test of Confluence

By , Sr. Technical Strategist
07 June 2012 23:45 GMT

Daily Bars

eliottWaves_eur-usd_body_eurusd.png, EURUSD Fails after Test of Confluence

Prepared by Jamie Saettele, CMT

Be sure to stay abreast of the current interpretation of wave structure in risk. The EURUSD has rallied into resistance from the January low, 5/28 high and 20 day average. Shorts off of this level could work towards 12460 or even 12385 but fading the weekly trend (low on Monday) is often difficult. As such, don’t dismiss potential for a run at channel resistance (just above 12700 on Friday) and former support at 12725 before a sharper turn lower. One strategy is to scale into shorts on a test of 12625 and up to 12725 for a drop next week.

LEVELS: 12385 12460 12540 12625 12700/25 12823

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07 June 2012 23:45 GMT