BFI: Currency market commentary



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BFI: Currency market commentary

18.05.2010 10:02 Tuesday

 This currency pair just after breaking resistance at 1.2330 is perceived to jumped toward 1.2500 .  Moreover, in case firm upward movement  the nearest pause should be not earlier than 40 pips above 1.2400 during the current march. According to the current situation We suggest to use any occasional rebound to sell euro and the first preferable level should be the resistance exactly at 1.2440. However breaking such resistance means that the market may add 100 pips easily.


It seems that the support around 1.1270 may survive the temporary bears attack with a possible rebound reaction as high as 1.1320. The support mentioned before shall be the perfect level for another movement higher especially when the resistance around 1.1430 is within our reach.


This pair has a significant resistance around 1.4540 and ups above that level may drive this currency cross up to 1.4620. On the other hand the pound looks quite weak against eurusd what may be reflected in quite strong falls  toward 1.4300 . Today We forecast to open short position from 1.4540 area with a stop loss order no more that 40 pips and  targets around 1.4440.


As this pair is trying to test the resistance at 115.50 any stronger rebound may reach even 117.20  till end of the day. On the other hand falls below the support at 113.80 may smoothly add another 100 pips down so our recommendation perceives opening shorts from 115.20 with a stop loss order around 115.60 while as testing level 50 pips higher may be read as a change of sentiment for more bullish.