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Old 02-26-2007, 03:19 AM
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Daily Currency report for Monday February 26 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 27 08:30 Durable Orders Jan -3.0% -2.0% 2.9%
Feb 27 10:00 Consumer Confidence Feb 109.5 109.0 110.3
Feb 27 10:00 Existing Home Sales Jan 6.30M 6.24M 6.22M
Feb 28 08:30 GDP-Prel. Q4 2.5% 2.3% 3.5%
Feb 28 08:30 Chain Deflator-Prel. Q4 1.5% 1.5% 1.5%
Feb 28 09:45 Chicago PMI Feb 50.0 50.0 48.8
Feb 28 10:00 New Home Sales Jan 1085K 1090K 1120K
Feb 28 10:30 Crude Inventories 02/23 NA NA 3694K
Mar 01 08:30 Personal Income Jan 0.3% 0.3% 0.5%
Mar 01 08:30 Personal Spending Jan 0.4% 0.4% 0.7%
Mar 01 08:30 Initial Claims 02/24 325K NA 332K
Mar 01 10:00 Construction Spending Jan -0.2% -0.4% -0.4%
Mar 01 10:00 ISM Index Feb 50.5 50.0 49.3
Mar 01 17:00 Auto Sales Feb 5.1M 5.1M 5.2M
Mar 01 17:00 Truck Sales Feb 7.2M 7.3M 7.5M
Mar 02 10:00 Mich Sentiment-Rev. Feb 93.3 94.0 93.3

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EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.3090

Support levels: 1.3090

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: Finally the euro has broken above the pivotal 1.3080 level, but has yet to gather some serious upside momentum. There is also a danger to bulls that we might be forming a sort of "broadening pattern" on the charts, with a top around 1.3200. This means until we have a daily close above 1.3200, there is an equal danger of a rush higher to 1.3300 or a sudden collapse to 1.3050. For now we will go with the fledgling upwards momentum and continue to buy dips. Support is roughly between 1.3140 and 1.3100. Below here means a visit to 1.3050 is on the cards. Still very tricky trading after a difficult month.

EUR/USD Hourly chart:



EUR/USD Weekly chart: