BFI: Currency market commentary



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BFI: Currency market commentary

24.05.2010 11:18 Monday

This currency pair just after breaking support at 1.2480 peaked toward 1.2430 and lower.  Moreover, in case falls below 1.2400  the nearest pause should be not earlier than 30 pips lower. According to the current situation We suggest to use any occasional fall to buy euro and the first preferable level should be the support at 1.2430. However jump above 1.2530  means that the market may add 130 pips easily.


It seems that the resistance around 1.1570 may survive the temporary bulls attack with a possible down reaction as low as 1.1530. The resistance mentioned before shall be the perfect level for another movement lower especially when the support around 1.1450 is within our reach. On the other hand testing levels at 1.1600 may be only possible in case any longer march toward 1.1700.


This pair has a significant support around 1.4420 and falls below that level may drive this currency cross down to 1.4380. Today We forecast to open long positions from 1.4430 area with a stop loss order no more that 40 pips and  targets exactly around 1.4600.


As this pair is trying to defend support at 111.90 any stronger rebound may reach even 114.00  till end of the week. On the other hand falls below that support may smoothly add another 30/60 pips down so our recommendation perceives opening longs from 111.30 with a stop loss order around 111.00 while as testing  that level may be read as a change of sentiment for more bearish with targets below 110.00.