Tools:
Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance

FX Levels and Outlooks 1.12.2011 - EUR/USD GBP/USD USD/JPY

EUR/USD Paring Most of Last Week's Decline
Resistance 1: 1.34; R2: 1.35; R3: 1.3750 (61.8% retracement)
Support 1: 1.3150; S2: 1.3050; S3: 1.2880
EUR/USD

- The EUR/USD is still consolidating when we look at the daily chart. Last week's sharp decline is followed by a sharp retracement.
- The natural question is whether this is a new bullish trend or whether it is still a correction to the decline since last November.
- The wave count suggests we could have completed a bearish impulse wave, and therefore, the rally this week could be wave a.
- With this count, we should anticipate a significant correction. If the 1.34-1.35 area gets broken, the market can rally towards 1.3750.
- However, if the market is in a strong decline after failing to break above 1.34, it should slide within a declining channel, and at least retest the lows near 1.2880.
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Fan Yang CMT
Chief Technical Strategist
FXTimes

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.