BFI: Currency market commentary



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BFI: Currency market commentary

01.06.2010 10:41 Tuesday

As the support at 1.2250 was strongly defended with a correction rebound toward 1.2290 We accounting for that the current quite flat movement may slide not deeper than at 1.2140 and then jump 60 pips at least. Exactly the support at 1.2150 is perceived as the perfect level for any long position. In  case any stronger rebound the resistance at 1.2360 shall be a matter of few days. However in case falls below 1.2140 the market may targeting at firm psychological support at 1.2000.


According to current upward pressure on this currency pair We suggest to open short position around the resistance at 1.1640 with a target 80 or 100 pips lower in longer perspective. However We suggest to consider 40 pips of stop loss order as jump above 1.1680 should reverse our strategy to more bullish with a target at 1.1730 at least.


The support area around 1.4390  appeared as the firm one meaning that  We may expect correction rebound even toward resistance at 1.4500 in optimistic scenario. So our daily recommendation perceives some longs from 1.4400 area as this support is highly expected to be tested. Moreover, any direct jump toward 1.4500 means that another 100 pips is in the market's reach.


In the latest few hours  We were dealing with falls toward 110.40. Today we suggest to consider some long positions from 109.40 with no more than 40 pips of stop loss order as any deeper slide may add 200 pips easily. On the other hand in case jump above 111.30 the first pause is expected at 114.30.