EURUSD 12-17-06

12-17-06

EURUSD

There was a long trade triggered in the EURUSD on Friday morning at 1.3100 which was exited at the first target of 1.3140 and the second target of 1. 3170. The EURUSD sold off after reaching the 1.3184 area of supply and resumed the move down to the weekly low. The close on Friday afternoon was just below the weekly chart low of 1.3095. The new weekly candle needs to close above the bottom support line of the chart at 1.3095 to re-enter the weekly 1.3095 to 1.3364 trading range and resume the move back to the top end of the range. It will be a slow grind since the US Dollar Index has an fresh area of demand at 83.50 to pullback to. For Sunday and Monday, I expect the EURO to trade between 1.3063 and 1.3104 with a close above 1.3095 a sign that the bottom of the range is in. I will wait for a day to allow the 60 minute moving average to cycle down to the trading range before trading the EURO long.