21.12.2000 08:19:00 TT-FX chart:EUR/USD

Having taken out the previously resistant 0.9020 (22-September intervention high), level, and 0.9090 (23.6% 1.1885 to 0.8227), the Euro is poised to tackle 0.9137 (61.8% 0.9700 to 0.8227). This is likely to be be a formidable hurdle but although an initial assault is likely to fail, an eventual successful assault should ultimately yield 0.9352 (76.4% 0.9700 to 0.8227) - consistent with the developing 3 Wave structure we have advocated since 23-November's 0.8371 low. An intraday recovery beyond 0.9098 would re-inforce this bullish view.
Meanwhile, as long as 0.9137 continues to cap the topside, near-term risk is for a pullback to 0.9049 and perhaps 0.9017 thereafter where buyers should re-emerge if tested. Further losses are not anticipated today, but failure to do so would yield 0.8964 ahead of renewed gains.



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