BFI: Currency market commentary



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BFI: Currency market commentary

14.06.2010 11:01 Monday
According to the latest few hours, we may see that the firm resistance was created at1.2220  meaning that targets around 1.2150 area should be tested finally. Moreover, this day quotations are also expected around  1.2050 area in pessimistic scenario. So Today opening shorts from 1.2220 or even 10 pips higher shall be profitable. Otherwise, only jump above 1.2250 may smoothly add another 100 pips .
As the support at 1.1380 appeared as too strong for bears so quotations quickly reversed toward first significant resistance 20 pips higher. Today We forecast further falls toward support at 1.1330  and then come back toward 1.1410 in consequence, so We recommend to use any fall toward  1.1320 as an opportunity for purchasing. Only falls below 1,1300 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 its correction upward rebound with a targets 112.80 at least our daily recommendation perceives to use any rebound around 113.00 as an opportunity to sell. But we have to remember that stop loss order should be placed not lower that at 113.20 as breaking this resistance may prolonged the current correction upward movement with  targets at 114.00 in longer perspective.