BFI: Currency market commentary



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BFI: Currency market commentary

28.06.2010 10:00 Monday

Due to quite neutral result of the latest G20 summit We have to deal at higher levels on this main currency pair. But it is important to remember that no measures has been taken to fight with as European deficits as sluggish global recovery. Using these facts We suggest to set some short positions around resistance area at 1.2420/50 especially when the second part of the week   is perceived as more bearish on US payrolls data.


Consequently opening longs from 1.0900 area traders may account for 200 pips of profit at least but firstly quotations should broke quite firm resistance around 1.1000 what would not be an action of just one trial. Otherwise, and deeper decrease shall be stopped not earlier than around support at 1.0800.


We are dealing now with quite strong pound especially due to program of budget cuts last week but in case any incidental deeper slide below 1.5000 another 150 pips would not be a problem. Today our recommendation sees such scenario with some shorts from 1.5070. However rebound above such resistance may open a way toward 1.5250 surely.


Some shorts from 110.70 may bring quite fat profits reaching levels 100 pips lower at least. But as long as the quotations are oscillating between bands at 110.70 and 109.50 accounting for falls toward 108.10 or jump toward 112.20 has the same 50% probability.