Daily Outlook 05.12.2007 by Dimo Dimov

The chart presents my working count for the fall started from 2.1160. I think it is developing as a zigzag with currently developing wave C. It has already reached the minimum requirement for its length but I think that we are still far from its end and I expect more pressure down. The previous low 2.0352 could turn out to be a resistance level now so I move the stop loss of the short position just above it. A possible target for wave C is 2.0000

Trading strategy: 10:40 EST; 14:40 GMT

The long position opened from 2.0420 was closed at 2.0350 with loss70 pips

Short position from 2.0350, stop loss - 2.0360, target - 2.0000

Confidence level – moderate

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