Forex Daily Podcast - Wednesday, January 11, 2006

We reevaluated all of the currencies overnight and either our correction on the EUR is complete at the Jan 6th high, or we are most likely entering into a more complex correction. Both of these alternatives mean that the EUR will most probably trade lower to the 1.1900 level or below in the near term. Our preferred path of the correction to date having the EUR immediately going up to the 1.2300 level is not out of the level is looking less probable as the chart patterns unfold. As corrections become more complex, it becomes more difficult to find good trades, so be cautious. The EUR currently trades at 1.2068. 1.7722 is likely the high of the GBP we will be looking for trade entries down unless this high is taken out. The GBP currently trades at 1.7542 The CHF is typically moves opposite of the EUR. Therefore, we are looking for trade entries up as a larger or complete correction is our now our favored alternative. The CHF currently trades at 1.2826. We reevaluated the entire JPY move from early December. If we view this as a corrective move rather than an impulsive move then we find the correction potentially complete at the 113.75 level. This provides an interesting alternative. We'd be looking for a trade up near the 114.10-113.75 levels for a move up to 117 or above. we'd likely use a 30-40 pip stop depending on how the wave pattern emerges. The JPY currently trades at 114.40. The CAD should trade up at least to the 117.50 level. We would like an entry up with 30-40 pips of risk using 1.1612 as a stop. 30 pips of risk would give us better than a 3:1 risk:reward ratio. The CAD currently trades at 1.1654. Forex Currency trading is very risky, please read the disclaimer on our web site. Visit us on the web at www.elliottexchange.com or at forex.podomatic.com. Good Luck and Good Trading