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Euro Technical Outlook

Tuesday, 08 April 2008 12:07:57 GMT

Written by Jamie Saettele, Currency Analyst

Near term, both legs of the down-up sequence from 1.5904 are not clear impulses.  This makes it likely that a larger correction is underway; either a triangle or a flat.  It is possible that waves A through D of a triangle are complete and that wave E is underway towards 1.5600 or just below.

 E waves of triangles are usually sharp and have a tendency to penetrate the lower triangle line.  The triangle line crosses through 1.5593 tomorrow.  It does remain possible that a larger correction is underway.

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