BFI: Currency market commentary



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BFI: Currency market commentary

07.06.2010 10:44 Monday

This currency cross is consequently approaching the thorough around 1.1700 meaning that any incidental rebound should be used as a perfect opportunity for selling. The nearest support is likely to be around 1.1875 where the current downward march shall be stopped for a while. Today recommendation perceive opening shorts from as high as 1.1960 as this firm resistance should withstand any occasional bulls attack. In case rebound above the level mentioned before another 50 pips shouldn't be a problem.


As this pair is a targeting at 1.4300 We definitely should assume that strategy of shorts what shall be more profitable than of longs ones. Today We suggest opening shorts first at 1.4450 and then even 30 pips higher as the resistance around 1.4510 should thwart any hopes of buyers. Only strong jump above 1.4550 may reverse the current sentiment to more bullish.


Consequently as the quotations are above 1.1600 the resistance at 1.1670 is within our reach moreover the next pause shall be not earlier than 50 pips higher. So Today we forecast to go even toward 1.1620 with possible opportunity to buy around that level. The support around 1.1460 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 109.00 has some chances to be profitable especially when our stop loss order has as many as 50 pips. Assuming that the support at 108.00 will survives traders may accounting that correction rebound may lead quotations as high as 110.30 or even 70 pips higher in more optimistic scenario – what shall be treated as a perfect opportunity for selling. However falls below support at 108.00 may drive this pair as low as 106.00 for sure.