Daily Outlook 02.01.2008 by Dimo Dimov

My working count suggests that the last few week’s movement is a flat correction. Wave A of it finished at 2.0100 and the subsequent fall is wave B. It is natural for it to stay above 1.9752 (the beginning of wave A) but I have to point out that this is not a must and a fall below it is allowable in wave B. One more rise to 2.0100 should follow in wave C upon my working count. With an eye on the above written I entered long today with stop below 1.9752. I pointed my confidence level as currently low because a move below 1.9752 is still possible but this will be not natural as I already mentioned. A rise above 1.9863 will increase my confidence in the above presented count.

Trading strategy: 10:25 EST; 15:25 GMT

Long position from 1.9812, stop loss - 1.9750, target - 2.0100

Confidence level – low

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