Daily Outlook 07.12.2007 by Dimo Dimov
The chart shows the recovery started from 107.19. It looks strong which combined with the overlapping of the previous low 111.58 could be a signal for a very serious rise. However I think that there are still arguments in favor of a different scenario. It is presented on the chart and suggests that a possible terminal impulse (ending diagonal) is developing. If this idea proves to be correct, when the pattern is completed, one should expect a sell-off with minimum requirement 107.19 and much lower after. However there is still no confirmation that the presented count is the correct one so I prefer to wait few more days. A resistance level is 112.35 while the support level is 110.35
Trading strategy: 10:30 EST; 15:30 GMT
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.