BFI: Currency market commentary



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BFI: Currency market commentary

23.06.2010 10:40 Wednesday

As the support at 1.2250 was strongly defended with a correction rebound toward 1.2310 We accounting for that the current rebound may drive quotations up to 1.2400 and then jump 50 pips at least. Exactly the area around 1.2270 is perceived as the perfect level for any long position. In  case any stronger rebound the resistance at 1.2360 shall be a matter of few hours. However in case falls below 1.2240 the market may targeting at firm psychological support at 1.2000.


According to the  current upward pressure on this currency pair We suggest to open short position around the resistance at 1.1080 with a target 80 or 100 pips lower in longer perspective. However We suggest to consider 40 pips of stop loss order as jump above 1.1110 should reverse our strategy to more bullish with a target at 1.1230 at least.


The support area around 1.4830  appeared as the firm one meaning that  We may expect correction rebound even toward resistance at 1.5000 in optimistic scenario. So our daily recommendation perceives some longs from 1.4840 area as this support is highly expected to be tested. Moreover, any direct jump toward 1.5000 means that another 40 pips is in the market's reach.


In the latest few hours  We were dealing with falls toward 110.70. Today we suggest to consider some long positions from 111.10 with no more than 40 pips of stop loss order as any deeper slide may add 200 pips easily. On the other hand in case jump above 111.60 the first pause is expected at 112.10.