BFI: Currency market commentary



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BFI: Currency market commentary

22.06.2010 10:33 Tuesday

As the support at 1.2270 was not broken but we are dealing now with a correction rebound toward 1.2350 the market may accounting for that the current quite flat movement may slide by 100 pips toward 1.2250 at least. Exactly the resistance at 1.2350 is perceived as the perfect level for any short position. In  case any stronger rebound the resistance at 1.2460 shall be a matter of few days. However in case falls below 1.2240 the market may targeting at firm psychological support at 1.2000.


According to current upward pressure on this currency pair We suggest to open long position around the support at 1.1070 with a target 80 or 100 pips higher in longer perspective. However We suggest to consider 40 pips of stop loss order as drop below 1.1030 should reverse our strategy to more bearish with target at 1.0920 at least.


The support area around 1.4700  appeared as the firm one meaning that  We may expect correction rebound even toward resistance at 1.4780 in optimistic scenario. So our daily recommendation perceives some shorts from 1.4780 area as this resistance is highly expected to be tested. Moreover, any direct jump toward 1.4850 means that another 100 pips is in the market's reach.


In the latest few hours  We were dealing with falls toward 110.60. Today we suggest to consider some short positions from 112.10 with no more than 40 pips of stop loss order as any stronger jump may add 200 pips easily. On the other hand in case fall below 111.30 the first pause is expected at 110.30.