Daily Outlook 12.12.2007 by Dimo Dimov

The fall started from 2.1160 found a temporary bottom at 2.0179 and a recovery started from there. I think that the upside potential is at least 2.0780 so I will try to enter long later this week. From a short term point of view I think that there is a completed double corrective combination started from 2.0179 (as is shown on the chart) followed by a corrective retreat with minimum requirement 2.0310. With an eye on this downside potential I enter short at market but I have to admit that this position is risky.

Trading strategy: 08:58 EST; 13:58 GMT

Sell at market (2.0483), stop loss – 2.0525, target – 2.0315

Confidence level - low

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