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EUR/USD Forecast - August 18, 2011

By DailyForex.com

Hi dear traders, I hope you had a profitable week. Despite volatility, this week wasn’t as tough as the previous ones, however it would be recommended to be careful. It's been widely speculated that gold will continue to gain, of course with variations, but at the end gaining and gaining.  The question is for how long. Let’s see what we have in EUR/USD pair:

EUR/USD Analysis, August 18, 2011

My today’s graphic is a bit strange, “Luis why 6 arrows?” you may think; it’s easy, as I’ve been saying EUR is one of those currencies which shows cycles, and the arrows mark out 3 different magnitudes of the same cycle repeating over and over again: a downtrend followed by a sudden rise. We had a downtrend yesterday, maybe it’ll continue for some hours, but suddenly a rebound will be seen. The pick is this, wait until the pair touches in the rebound 1.44 (the wait is just to confirm the new trend) then BUY it, look for profits @1.45. It would be like 95-102 pips depending upon when you place your order. If you don’t believe me, check the Stochastics, with such a low value, it’s quite obvious an uptrend will begin.

Good profits! 

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