Daily Outlook 28.11.2007 by Dimo Dimov

I think that the last week’s movement is developing as a triangle. However there is still no clearness what is the position of this triangle. It could be in the position of wave X (in such a case one should expect further rise with minimum target 2.0850) or in the position of wave W (in such a case one should expect a fall minimum to 2.0470). With an eye on the uncertainty I am currently flat but I will enter a position on a break of the triangle. A key support is 2.0580. A key resistance is 2.0754.

Trading strategy: 09:07 EST; 13:07 GMT

Sell on break of 2.0580 (sell stop order at 2.0579) or buy on break 2.0759 (buy stop order at 2.0760), stop loss - 2.0660, target – opened

Confidence level – moderate

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