BFI: Currency market commentary



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BFI: Currency market commentary

20.05.2010 10:52 Thursday
According to 30 minutes chart of this pair, we may see that the firm support was created at1.2330     meaning that targets around 1.2430 area should be tested and broken finally. Moreover, this week quotations are expected around  1.2620 area in optimistic scenario. So Today opening longs from 1.2370 or even 10 pips lower shall be profitable. Otherwise, only falls below 1.2420 may smoothly add another 200 pips lower.
As the resistance at 1.1570 appeared as too strong for bulls so quotations quickly reversed toward first significant support 70 pips lower. Today We forecast further falls toward 1.1460 and then 1.1410 in consequence, so We recommend to use any jump toward  1.1500/10 as an opportunity for selling. Only jump above 1,1570 may reverse our strategy to more bullish.
As this pair tested the resistance at 1.4400 and may easily return toward that area We suggest to open longs around 1.4340 or 20 pips lower but with stop loss order not lower than at 1.4290. Moreover breaking such support mentioned before may open a way toward 1.4230 at least. Otherwise, rebound above 1.4400 may start march for another 100 pips easily.
As this currency cross is in it's correction upward rebound with a targets 115.30 at least our daily recommendation perceives to use any slide around 112.60 as an opportunity to buy. But we have to remember that stop loss order should be placed not lower that at 112.00 as breaking this support may end the current correction upward movement with falls to about 110.30 in longer perspective.