Daily Outlook 09.01.2008 by Dimo Dimov

I think that the last few days’ movement was a bearish triangle which is already broken from the downside today. In my opinion this triangle is limited one i.e. we are close to short term bottom. With an eye on this I entered long earlier today but I should say that this position is still risky because currently there is no sign for a reversal. A key support is 1.9550. A first signal for my idea will be a rise above 1.9710 and confirmation – above 1.9762. In such a case I will expect a correction of the whole fall started from 2.1160.

Trading strategy: 06:36 EST; 11:36 GMT

Long position from 1.9627, stop loss -1.9550, target - opened

Confidence level – low

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