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Daily Currency report for Wednesday February 07 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:Back to 1.2990, recovering 50% of the post NFP decline, and right in the middle of the range of the past 5 weeks (roughly 1.3050 - 1.2850). Short term momentum is still bullish, but risk and reward are not well matched right now. 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.

EUR/USD Hourly chart: