Daily Outlook 23.01.2008 by Dimo Dimov

The yesterday’s rise from 1.9334 to 1.9644 is impressive but I don’t think it is impulsive in nature. If it is indeed corrective in nature, it should be part of a triangle which should be formed in coming days. The retreat after the reached high 1.9644 is deep but I still think that it is unfinished yet. I expect its minimum requirement to be 1.9452 (61.8 % retracement) but I allow a fall even to 1.9393 (80.9 % retracement). With an eye on this I give a strategy to enter long but only on deeper pullback. A key resistance is the yesterday’s high 1.9644

Trading strategy: 10:37 EST; 15:37 GMT

The long position opened from 1.9476 and the addition to it opened from 1.9600 was closed at 1.9540 with total profit 4 pips.

Buy again on dips to 1.9400, stop loss – 1.9333, target – 1.9650

Confidence level – medium

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