BFI: Currency market commentary



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BFI: Currency market commentary

25.05.2010 10:43 Tuesday

This currency cross is consequently approaching the last week thorough around 1.2150 meaning that any incidental rebound should be used as a perfect opportunity for selling. The nearest support is likely to be around 1.2215 where the current downward march shall be stopped for a while. Today recommendation perceive opening shorts from as high as 1.2350 as this firm resistance should withstand any occasional bulls attack. In case rebound above the level mentioned before another 120 pips shouldn't be a problem.


As this pair is a targeting at 1.3920 We definitely should assume that strategy of shorts shall be more profitable than of longs ones. Today We suggest opening shorts first at 1.4340 and then even 30 pips higher as the resistance around 1.4370 should thwart any hopes of buyers. Only strong jump above 1.4400 may reverse the current sentiment to more bullish.


Consequently as the quotations are above 1.1600 the resistance at 1.1730 is within our reach moreover the next pause shall be not earlier than 200 pips higher. So Today we forecast to go even above 1.1700 with possible opportunity to buy around 1.1610. The support around 1.1560 has a little chances to be tested but accidentally the market may be a witness of falls exactly toward that support, what should be used by buyers totally.


Buying around 110.00 has some chances to be profitable especially when our stop loss order has as many as 50 pips. Assuming that the support at 109.50 will survives traders may accounting that correction rebound may lead quotations as high as 110.85 or even 50 pips higher in more optimistic scenario. However falls below such significant support may drive this pair as low as 106.00 for sure.