Daily Outlook 28.12.2007 by Dimo Dimov
The fall started yesterday from 114.63 is very sharp and looks impulsive at first glance. If this is the case, we should see further losses with potential even new low below 107.19 in coming days. However to tell you the truth, I am not convinced that this fall is impulsive in nature. Nevertheless of its strength, it still could be corrective in nature. The corrective scenario is presented on the chart. We have currently a double corrective combination and once it is over, we should see a strong rise for a high above 114.63. The problem here is that the double combination could turn out to be triple corrective combination i.e. one more three waves movement down is still possible before the expected rise upon the corrective scenario. With an eye on the uncertainty I prefer to be currently flat. An important resistance is 113.30. A support level is currently 112.60
Trading strategy: 07:36 EST; 12:36 GMT
This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.