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Hi....

Interesting long term view, and indeed probably a correct one! I just
wanted to bring to your attention tht there was a similar pattern that
developed at the beginning of 2005. In this case, however, EUR/USD
broke through the lower wedge, likely due to a series of increases in
interest rates (fundamental support, which does not exist right now).


The similarities of these two periods were actually mentioned by James
in 2007. Now it seems that this pattern is continuing. Question is, for
how long? Probably not very long. In my opinion, look for a bounce off
of resistance at around 1.4500 followed by an upward march toward
1.5000/1.6000.


Finally, the fact that these consolidation triangles takes place toward
to beginning of the year makes sense... investors are trying to guage
trends, risks, and possibilities for the next year. Especially now, at
a time when investors are trying to guage the possibility of a U.S.
recession.


Take care and happy pip hunting to all!


rudenstein