Daily Currency report for Wednesday February 21 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
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Date ET Release For Actual Briefing.com Consensus Prior Revised From
Feb 21 08:30 CPI Jan 0.2% 0.1% 0.4%
Feb 21 08:30 Core CPI Jan 0.2% 0.2% 0.1%
Feb 21 10:00 Leading Indicators Jan 0.3% 0.2% 0.3%
Feb 21 10:30 Crude Inventories 02/16 NA NA -589K
Feb 21 14:00 FOMC Minutes Jan 31
Feb 22 08:30 Initial Claims 02/17 320K 325K 357K
Feb 22 10:00 Help-Wanted Index Jan 33 34 33
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EUR/USD
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.2940
Support levels: 1.3090, 1.3050, 1.3000, 1.2950
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: Again little changed as we move aimlessly around in a 60 point range. The longer we consolidate here the better the chance we will continue higher, but we will have to allow for a "spike" below the range first. We need to push through 1.3180/1.3200 today (plus a daily close above there) to attract more momentum buyers, so until that happens, the scenario remains very much the same as yesterday: There is weekly 61.8% Fibonacci resistance just above at 1.3177, so we will continue to allow for dips to 1.3050 (and possibly even 1.2950) before we really get moving higher. Today, hold longs from 1.3100, with stops tightened, or continue to buy dips whilst above 1.2950/1.3000
EUR/USD Hourly chart:
EUR/USD Weekly chart: