BFI: Currency market commentary



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BFI: Currency market commentary

11.06.2010 10:39 Friday
According to 30 minutes chart of this pair, we may see that the firm support was created at1.2090     meaning that targets around 1.2150 area should be tested finally. Moreover, this day quotations are also expected around  1.2040 area in pessimistic scenario. So Today opening shorts from 1.2140 or even 10 pips higher shall be profitable. Otherwise, only jump above 1.2200 may smoothly add another 200 pips .

As the support at 1.1380 appeared as too strong for bulls so quotations quickly reversed toward first significant resistance 70 pips higher. Today We forecast further falls toward that support mentioned before and then come back toward 1.1510 in consequence, so We recommend to use any fall toward  1.1380/90 as an opportunity for purchasing. Only falls below 1,1370 may reverse our strategy to more bearish.

As this pair tested the resistance at 1.4750 and may easily return toward that area We suggest to open shorts around 1.4720 or 20 pips higher but with stop loss order not lower than at 1.4780. Moreover breaking such resistance mentioned before may open a way toward 1.4850 at least. Otherwise, falls below 1.4650 may start march for another 100 pips easily.

As this currency cross is in it's correction upward rebound with a targets 111.80 at least our daily recommendation perceives to use any rebound around 112.00 as an opportunity to sell. But we have to remember that stop loss order should be placed not lower that at 112.20 as breaking this support may prolonged the current correction upward movement with  targets at 114.00 in longer perspective.