FX Times: Daily Technical Update EUR/GBP Reassessing Subwave “2″

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Via fxtimes.com
Fan Yang \ 1:46 PM EST \ December 16th, 2009

EUR/GBP Reassessing Subwave 2 of Primary wave V


* Daily and 4H: The screenshot in the daily time-frame is the intermediate outlook that’s in-line with the current possible Elliott Wave count. The 4H time-frame was showing a short-term bearish outlook to start the week. The initial projection was 0.8950, the 61.8% retracement area. (Refer to Daily Video Technical Update 12.11.2009).
* The market continued to decline, now testing the 0.8900 level support level, coincident with 78.6% retracement.
* The stochastic readings in both Daily and 4H suggests at least a correction rally would be due soon.
* For the Elliott Wave count to remain valid, the market must not push the pair below 0.8900 too much before this correction rally as this is the final retracement level where the target would be further than the previous peak/low.
* The US session is on the verge of invalidating the wave count, but volatility subsided after the opening push. So we will have to check for more information during the Asian session.
* A further decline sees short-term support at 0.8850.
* A failed retracement support at 78.6%(0.8900) but rather at 100% (0.8850) is suggestive of ranging action instead of continuation (bullish) action. If the market manages to rebound from here, we may have to adjust our projection to 0.9000, instead of the 0.9400 level.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.