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Thursday, February 10, 2011

EUR/USD - The correction from 135.41 is clearly over

The Expanded flat correction from 135.41 is clearly over. The correction fund it's top in the 137.35 - 137.50 range and we should see a decline below 136.06, which confirms that the next impulsive leg lower is in motion.

I do expect a small consolidation, which could take us up to the 136.80-136.95 area, before the final break below 136.06 will be seen, but we don't have to see it, so be aware that a break below 136.06 could accelerate the move to the downside for a decline towards 132.16.

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