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Euro Technical Outlook

Tuesday, 02 December 2008 13:37:47 GMT

Written by Jamie Saettele, Senior Currency Strategist

One can make both a bullish and bearish argument for the euro / dollar going forward.  From the bearish perspective, the euro / dollar could still drop below 1.2330 in a 5th wave terminal thrust from a triangle, which is in its final stages.  The triangle labeling is what I am showing this morning.  

In the case of the triangle, wave e of the advance should end this week.  Resistance begins at 1.28 and extends as high as 1.30.  From the bullish perspective, the rallies from 1.2330 could be a series of 1st and 2nd waves.  While not pretty, the count is valid and most big rallies begin after formation of a large base. 

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