Daily Outlook 17.12.2007 by Dimo Dimov

The last few days’ sell-off started from 1.4736 is impulsive and one can see clear five wave structure. We are currently in wave 5 which could reach 1.4300. However one should bear in mind that the minimum requirement for the length of wave 5 is already reached so it could finish every moment. When it finishes, one should expect some correction to 1.4500 before another sell-off. An important resistance level is 1.4400 because a rise above it will signal completion of the impulse shown on the chart. With an eye on this I move the stop loss of the short position opened on Friday just above it.

Trading strategy: 05:18 EST; 10:18 GMT

Short position from 1.4523, move the stop loss from 1.4610 to 1.4405, target – 1.4300

Confidence level – changed from moderate to high

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