Monday, December 21, 2009

ElliottWaveTechnician December 2009 Newsletter - Extract

Here is an extract of our December 2009 investment newsletter published 18th of December 2009 covering currencies.

Currencies
The USD dollar is following the forecast from our early Nov. 2009 Special Currency Report rising relative to other world major currencies. Our analysis indicates that the USD made an important long term bottom in late November 2009 and should rise into 2011. The following is an update on the USD and the USD/EURO cross rate. The picture is similar for the other major currencies.






































The USD is rising against all other currencies in wave 1 up. Resistance on the index at 77.50 and also from the 200 ma at 79. It looks like wave 1 will end by the end of December 2009 the next should then be a correction in wave 2 that could last some weeks that should retrace min. 38% of the advance. More likely the coming pullback may take back 50% or 62% of the advance. Expect a retest of the broken uptrend line before the rally continues. This could take some weeks.

The USD/EURO cross rate






































A very strong dollar taking the ratio up into overbought territory in wave 1 is soon to be completed. Resistance on the ratio is at 0,55 - 0,56 from previous bottom and 200 ma.

The next should be a pullback in wave 2 that would retrace min. 38% of the advance. More likely the coming pullback may take back 50% or 62% of the advance. Expect a retest of the broken uptrend line before the rally continues. This could take some weeks.

Geir Solem
http://www.elliottwavetechnician.com/
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