Daily Outlook 28.01.2008 by Dimo Dimov
I think that the rise started from 1.4364 is corrective movement and is a part of a triangle. In fact the euro could go higher from here but there no reliable targets for the upside. This and the fact that I do not expect break of 1.4921 level forced me to enter a short position because an eventual fall from here could be with great downside potential. A key support is 1.4658 and as long as it remains unbroken, one should expect more upside. On the upside a key resistance is 1.4921.
Trading strategy: 11:56 EST; 16:56 GMT
Short position from 1.4792, stop loss â€“ 1.4925, target - open
Confidence level â€“ low
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.