FX Trading - MAY 28th                                            

The comments below form the basis of my FX forecasting service which is emailed each day to subscribers. It provides short term updates of EUR, JPY, CHF, GBP, AUD and NZD. A three week trial is available for $50. Email TRL@clear.net.nz

Over-View:

EUR/USD has now met my 1.2500 Medium Term Target and the Euro’s Downtrend displays the requisite wave form to enable a completion of the larger 3rd-Wave decline extending from the Wave 2/ peak of early June (refer Daily chart below).

However, In terms of the Elliott Wave structure of the market, my best interpretation calls for any such recovery to be a corrective 4th Wave; with the “bigger picture outlook” still risking a deeper sell-off toward the June 2010 low of 1.1860 over coming weeks. Only beyond the 1.3000 level would diffuse this Medium Term Downside risk.

Today’s Featured Trade is EUR/USD:

The Euro now has Support at 1.2550/1.2530, with a break above 1.2600/2630 resistance encouraging a corrective recovery toward the 1.2700 level, with potential as high as 1.2825.  I am now Buying EUR/USD, with a Stop under 1.2510, initially.

Disclaimer: Max McKegg & Technical Research Ltd accept no liability  whatsoever for any loss or

damage that may result, directly or indirectly, from any forecast, comment or opinion, information or omission, whether negligent or otherwise, within this report.