Bullish Potential in Euro Strengthens

Igor Kulaga from Forex Ltd at 02/17/10

EUR
Earlier opened and held short positions did not have a positive result within the frames of the previous trading session. OsMA trend indicator, having marked strengthening of buying activity, delivers negative signs regarding holding of earlier opened sales. Therefore, at this point, considering preference of bullish direction in planning trading operations for today and current descending direction of indicator chart, we can assume probability of rate return to close 1,3720/40 supports, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term buying positions on condition of the formation of topping signals the targets will be 1,3780/1,3800, 1,3820/40 and (or) further break-out variant up to 1,3880/1,3900, 1,3960/80, 1,4020/40. The alternative for sales will be below 1,3660 with the targets of 1,3600/20, 1,3540/60.

CHF
The pre-planned break-out variant for sales has been implemented, attainment of the anticipated targets is supported by relative rise of bearish activity, marked by OsMA trend indicator at break of key supports. Therefore, at this point, considering ascending direction of indicator chart, we can assume probability of rate return to close 1,0680/1,0700 resistance levels, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term sales on condition of the formation of topping signals the targets will be 1,0620/40, 1,0580/1,0600 and (or) further break-out variant up to 1,0520/40, 1,0460/80. The alternative for buyers will be above 1,0760 with the targets of 1,0800/20, 1,0860/80.

GBP
The estimated test of key resistance range levels has been confirmed, however, relative rise of bullish activity, marked by OsMA trend indicator, did not favor implementation of the pre-planned short positions. Therefore, at this point, considering the current situation as favoring incompleteness of bullish development and taking into account descending direction of indicator chart, we can assume probability of rate return to close 1,5720/40 supports, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term buying positions on condition of the formation of topping signals the targets will be 1,5780/1,5820 and (or) further break-out variant up to 1,5860/80, 1,5920/40, 1,5980/1,6000.

JPY
Earlier opened and held long positions had a positive result in attainment of minimal anticipated target. OsMA trend indicator, having marked preserved low activity of both parties, as earlier does not clarify the choice of planning priorities for today. Therefore, considering a chosen strategy, we can assume probability of rate return to close border of Ichimoku cloud at 90,00/10 levels, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term buying positions on condition of the formation of topping signals the targets will be 90,40/60 and (or) further break-out variant up to 91,00,20, 91,60/80. The alternative for sales will be below 89,60 with the targets of 89,00/20, 88,40/60.