BFI: Currency market commentary



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BFI: Currency market commentary

10.06.2010 09:54 Thursday

 This currency pair just after breaking resistance at 1.2000 went up toward 1.2060 and higher.  Moreover, in case falls below 1.2000  the nearest pause should be not earlier than 50 pips lower. According to the current situation We suggest to use any occasional rebound to sell euro and the first preferable level should be the resistance at 1.2050. However jump above 1.2070  means that the market may add 100 pips easily.


It seems that the support around 1.1420 may survive the temporary bears attack with a possible up reaction as high as 1.1550. The support mentioned before shall be the perfect level for another movement higher especially when the resistance around 1.1500 is within our reach. On the other hand testing levels at 1.1390 may be only possible in case any longer march toward 1.1280.


This pair has a significant resistance around 1.4610 and falls below that level may drive this currency cross down to 1.4400. Today We forecast to open short positions from 1.4600 area with a stop loss order no more than 40 pips and  targets exactly around 1.4400.


As this pair is trying to defend the resistance at 110.40 any stronger downward pressure may reach even 108.60  till end of the day. On the other hand jump above that higher level  may smoothly add another 60 pips so our recommendation perceives opening shorts from 110.40 with a stop loss order around 110.80 while as testing  that level may be read as a change of sentiment for more bullish.