Only five more trading days until 2006 officially comes to a close. It looks as if EUR/USD will finish the year either below, or very close to, the 1.3000 level. Our current 5th wave target of 1.2980 is only 100 points below today's New York session lows, and is well within reach after the current correction runs its course. The current preferred wave count puts us in wave 4, which should terminate between 1.3135-1.3155, before another 5 waves down into the year-ending target of 1.2985. If tonight's move up travels significantly beyond 1.3160, then my count is invalid as the rules of Elliott Wave Theory do not allow wave 4 to travel into the region of wave 1 (shown on the chart), and we will have to re-evaluate. So, the game plan is to get short between 1.3135 and 1.3155 with stops around 1.3170. Look to book profits on a partial on a re-test of this morning's 1.3100 area lows and pull the stop down to lessen your risk.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.