BFI: Currency market commentary



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BFI: Currency market commentary

17.06.2010 12:00 Thursday

The yesterday commentary shall be kept as demand for common currency is still quite weak and the maximum reach of the current rebound is estimated at around 1.2350/90 and the lower resistance was tested unsuccessfully. So We consequently bet on further declines in mid-term, continuing that thought opening some shorts around 1.2350 would be a smart decision as the factor of austerity EU is still weighting on common currency. Otherwise, in case jump above 1.2400 the resistance 30 pips higher should withstand any bulls attack.


Following sentiment governing on eurusd adversely We are suggesting to open some longs not earlier than from support at 1.1140 with possibility of position enlargement 20 pips lower. However We have to point out that fall below 1.1100 may easily add another 100 pips lower.


Setting short position around 1.4690 may bring a fat profit but only in case another strong jump above 1.4780. Moreover any journey toward 1.4900 means that the psychological resistance around 1.5000 may become a real target. Only drop below 1.4700 may smoothly add another 70 pips lower.


Today we forecast that any flat slide toward 112.20 is highly possible, what is more that significant support shall be treated as a perfect opportunity to purchase euro with targets 100 pips higher, at least. On the other hand only falls below 110.00 may force bulls to return toward 108.00 area.