Daily Outlook 18.01.2008 by Dimo Dimov

The chart shows the movement after the reached low 105.89. It is obvious that a correction has started from it but there is still no clearness what is the pattern. The problem is the fact that all waves since 105.89 are corrective in nature. This means that if there is a flat correction, wave C of it should be a terminal impulse. If this is the case we are still far from its completing. The target of such a pattern should be a new high above 107.91 so I give a strategy for a long position on dips to 107.00. A key support is 106.33

Trading strategy: 09:42 EST; 14:42 GMT

Buy on dips to 107.00, stop loss – 106.30, target - open

Confidence level – medium

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