Daily Outlook 25.01.2008 by Dimo Dimov

The chart shows my working count for the movement started from 104.94 low. I think that there is a room for more upside. One of the possibilities is that the movement after the end of wave 1 labeled on the chart is wave 2 developing as a running correction. In such a case one should expect some sideways movement till Monday when should be expected resuming of the rise in wave 3. If the presented count is correct, the expected length of wave 3 161.8 % of the length of wave 1. A key support is 106.95.

Trading strategy: 11:41 EST; 16:41 GMT

Long position from 106.67, move the stop loss from 106.10 to 106.94, target - open

Confidence level – changed from low to moderate

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