Daily Outlook 30.01.2008 by Dimo Dimov

The rise started from 1.9336 in significant but I think it is corrective in nature. What’s more, my working count suggests that wave C of it is a terminal impulse 9ending diagonal) which suggests a fast and sharp fall with minimum requirement 1.9462. With an eye on these thoughts I entered short position. A key resistance is 1.9947 and a break above it will made the situation bullish.

Trading strategy: 10:05 EST; 15:05 GMT

Short position from 1.9885, move the stop loss from 1.9980 to 1.9955, target – open

Add to the short position on break of 1.9865 (sell stop order at 1.9864), stop loss – 1.9925, target - open

Confidence level – changed from low to medium

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