[forex618]

Daily Currency report for Monday February 05 2007

This is only a guide. Please refer to our specific entry signals for exact entries and stops.

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This Week's Economic Calendar






DateETReleaseForActualBriefing.comConsensusPriorRevised FromFeb 0510:00ISM ServicesJan 56.057.056.7 Feb 0708:30Productivity-PrelQ4 1.5%1.7%0.2% Feb 0710:30Crude Inventories02/02 NANA2684K Feb 0715:00Consumer CreditDec $8.0B$6.5B$12.3B Feb 0808:30Initial Claims02/03 310K310K307K Feb 0810:00Wholesale InventoriesDec 0.7%0.6%1.3%
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 supportafter 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:Now entering the 5th week in the same 1.2860 - 1.3060 range. Very good for range traders with a 200 pip corridor, but frustrating for trend traders. Momentum is marginally bullish, and good support lies between 1.2920 and 1.2880, so we expect the euro to attempt to base in this area. As yet, there are no signs of that happening, so we shall have to be patient and watch for a reversal pattern to develop. When that happens, buy at the support zone, targeting 1.3020, and eventually, a break above there towards 1.3100 and 1.3300. A daily close below 1.2800 will postpone all of this and probably lead to a drop to below 1.2700.

EUR/USD Hourly chart:


EUR/USD Weekly chart: