Jamie's Pick: 03/31/11
The EURUSD has rallied from trendline support and focus is on measured objectives at 14360 and 14413. I do expect that this rally from 14020 will complete the entire corrective advance from 11875 however. Prior congestion extends to the 2010 high at 14579. In summary, I’m on the lookout for a ‘blowoff’ top above 14300. A drop below 14020 would be required in order to suggest that a top is in place.
The NZDUSD is up 9 of the last 10 days and closing in on a convergence of resistance levels. 7655 is the 2/18 high (2/4 low defends at 7665), the underside of the support line from the 2009 low is just above 7700 as is the resistance line extended off of the November and February highs. The operative short term wave count is a double zigzag and the 2 zigzags would be equal at 7708. I favor shorting rallies into the mentioned resistance as close to 7700 as possible.
I like expressing these thoughts through the EURNZD. I favor the long side at the market with a stop under 18420. Objectives are 18800 and 19000.
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