Daily Currency report for Friday February 23 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: A brief spike to 1.3080 came as expected, and may just be the spark we needed to break the deadlock. The picture remains the same: We need to push through 1.3180/1.3200 today (plus a daily close above there) to attract more momentum buyers. 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: