Daily Outlook 11.01.2008 by Dimo Dimov

The recent fall started from 114.63 found temporary bottom at 107.86 and a correction of the said down movement is currently under way. This correction is still unfinished upon me and we should see at least one more rise in wave C with potential target 110.40 (38.2 % retracement). With an eye on this I try to enter long for this movement. It is natural the current low 107.86 to remain unbroken at this stage but I have to admit that this is not a must and a little fall below it is allowable without any damage to the idea for forthcoming rise. A rise above 109.70 will be a confirmation that this move is already under way.

Trading strategy: 10:33 EST; 17:33 GMT

Buy on dips to 108.35, stop loss - 107.85, target - 110.40

Confidence level – low

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