EURUSD 11-22-06

11-22-06

EURUSD

It looks as if the EURUSD is going to test the 1.2900 area of supply which has stopped every rally since May, 2006. In fact, the last time the EURUSD closed above 1.2900 was in June, 2006. The range from yesterday's email was 1.2805 to 1.2830, and this morning the EURUSD has extended the range up to the 1.2865 area of supply. Along the way, the EURUSD has based near 1.2845 and 1.2825 which should be areas of breakout support to buy on pullbacks. If the EURUSD continues to rally past the 1.2865 area, 1.2865 will be another area to buy on a retracement for a move higher. At this point, I will buy a pullback to the 1.2845 area if the EURUSD retraces instead of breaking out.