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EURUSD Rally from Double Bottom to Continue

Monday, 04 August 2008 18:20:29 GMT

Written by Jamie Saettele, Senior Currency Strategist

The EURUSD is likely to exceed 1.5699 before resuming the downtrend that began at 1.6039.

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The EURUSD failed to accelerate lower Friday (creating a double bottom) and the decline from 1.5699 is not impulsive, therefore the short term count has been altered.  We remain bearish bigger picture but expect a rally through 1.5699 before the decline resumes.  The 38.2% of 1.6039-1.5521 at 1.5719 may serve as resistance, as could the 21 day SMA (currently at 1.5745).

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