BFI: Currency market commentary



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BFI: Currency market commentary

08.06.2010 10:46 Tuesday

Currently this pair is trading in quite thin range between 1.1880 and 1.1980 and moreover any rebound toward 1.2040 shall be totally used by sellers. In case any stronger jump some shorts shall be enlarged a little above 1.2100. However we would like to point out that is highly possible that this week quotations may test the firm support around 1.1700.


As this currency cross  created the temporary support around 1.1580 with contrary reaction of bulls up to 1.1630 so today quotations may add another 30/40 pips higher. On the other side testing support around 1.1530 should be profitable occasion for dollar purchasers. What is more the next significant support seems to be not earlier than 100 pips lower.


Due to falls from 1.4560 the nearest target for bears is likely to be at 1.4430, moreover testing levels around 1.4250 shall take place indeed if 1.4400 is broken. On the other hand jump above 1.4560 should be effected in reaching resistance around 1.4630 where some short position may be placed and generously enlarged not earlier than 30 pips above 1.4700.


The market is expected to go up to 111.00 where some fat shorts shall be opened and accidentally enlarged not faster than 80 pips higher. As the supports at 108.80 and then 108.00 is likely to withstand the  current selling pressure we may be dealing with significant rebound up to 113.20 in the nearest feature.