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Euro Technical Outlook

Wednesday, 02 July 2008 14:27:43 GMT

Written by Jamie Saettele, Technical Currency Analyst

The EURUSD is expected to exceed 1.6018 and continue on to all-time highs in the next few weeks.

We can eliminate the triangle count since the EURUSD exceeded 1.5843.  This leaves us with 2 counts going forward.  The preferred count treats the advance from 1.5283 as a series of 1st and 2nd waves (1 and 2 of V).  The rally from 1.5303 is wav i of 3.  While wave i of 3 may extend a bit more, expect a wave ii drop to begin soon and bring price back below 1.5720.

STRATEGY: Bullish, against 1.5303 (short term traders should be bearish against 1.5837), target is above 1.6018

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