Medium Term Outlook 14.01.2008 by Dimo Dimov

The suggestion form June 2007 for a giant terminal impulse started from 101.66 (January 2005) looks the best scenario at the moment. This count is presented on the chart and suggests that the terminal impulse finished at 124.12 (June 2007). We saw a sharp sell-off from the last level and the interesting here is the fact, that the down move should accelerate from here and we should see much lower prices in coming weeks and months. The minimum requirement for the current fall is 101.66 i.e. a complete retracement of the pattern but I don’t think that there will be any significant correction before 96.50 (at this level wave 3 of the fall will be 161.8 % of wave 1 on logarithmic scale). A key resistance is 114.63 and as long as this pair stays below it, the perspectives are extremely bearish.

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