Daily Outlook 15.02.2008 by Dimo Dimov

The situation here is interesting. There was a consolidation in the last few weeks which should be already over. One of the possibilities is to have a zigzag correction started from 104.94 which could be already over at 108.60. In such a case a new sell-off is forthcoming for a low below 104.94. However I think that there is possibility also for the opposite movement. It suggests that the recent consolidation was in a triangle (bullish) which should be already over. In such a case further rise should be expected. The chart shows this possibility but I should note that only a rise above 108.30 will be a signal in favor of this scenario. On the other side a fall below 106.96 will be very bearish. My feeling is that the direction here is up so I entered a long position earlier today.

Trading strategy: 10:58 EST; 15:58 GMT

Long position from 107.63, stop loss - 106.95, target - open

Confidence level – low

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