Thursday, December 4, 2008

12/4 - LONG POSITION ADJUSTED


The US Dollar Index has potentially completed wave B within an A-B-C correction. Below the 85 handle confirms this corrective formation and will also highlight a head & shoulders distribution pattern. Wave C is now projected to reach 84.00 (roughly 1.31 EUR/USD). Expect dollar weakness to persist while trading below the key fibonacci retracement level (78.6% of 2005 high - 2008 low) near 88.00.

Strategy Summary: LONG EUR/USD AT 1.2607 FOR 1.3112 (ADJUSTED TARGET), 1/2 STOPPED AT 1.2552, ADJUSTED STOP AT 1.2607

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