Daily Outlook 21.01.2008 by Dimo Dimov

The fall started from 1.4921 is impulsive in nature upon me. I think that there are 5 completed waves down so I expect a correction of this movement. With an eye on these expectations I exited my previous short position on Friday and even turned long today. However I have to note that the current long position is against the larger trend so one should be very careful. A rise above 1.4560 will signal that the presented count is correct and in such a case I would expect further recovery to 1.4620 – 1.4700 later in the week. An important support is 1.4450

Trading strategy: 09:06 EST; 14:06 GMT

Long position from 1.4500, stop loss - 1.4450, target – 1.4650

Confidence level – low

This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.