Daily Outlook 14.12.2007 by Dimo Dimov

My working count suggests that the rise started from 107.19 is corrective in nature and is developing as a zigzag. Wave C of it started from 109.54 and I think is developing as a terminal impulse. A fall below the lower trendline shown on the chart would be a signal in favor of the terminal impulse scenario and should bring a fast fall to minimum 109.54 (the starting point of the pattern) for a less time than it took to form. A key resistance is 113.39 because at this point wave 3 will become the shortest wave which is impossible upon the presented count.

Trading strategy: 09:58 EST; 14:58 GMT

Short position from 112.98, stop loss - 113.45, 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.