Friday February 09 2007
This is only a guide. Please refer to our specific entry signals for exact entries and stops.
EUR/USD
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.2860
Support levels: 1.2920, 1.2880, 1.2866
Strategy: Whilst above the weekly trend reversal level, buy dips to support after an entry signal.
Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3600, the multi-year high, and possibly higher still, towards 1.4100.
Today: Surprisingly docile compared to its counterparts yesterday, the euro ended up moving 20 pips higher by the end of the day, so very little has changed. No change to the strategy - continue to buy dips, whilst above 1.2860, but be aware that this range will break soon, and it is by no means clear which way. A daily close below 1.2800 will probably lead to a drop to below 1.2700, whereas a close above 1.3050 is needed to send the euro higher towards 1.3150 and then 1.3300.
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