ExoticTrading is a series of analyzes, which is created in collaboration with the broker InterTrader and is published on Comparic every Monday, Wednesday and Friday. The theme as the name suggests are so called- exotic currency pairs.
After the recent breaking of the very important support zone around 9.1470 levels the market continued to decline. We are now at the height of the upward trend, where we can expect a strong reaction of demand, which could cause a correction and re-test of this zone (this time as resistance). If the market will overcome the present support, the decline could reach the region of the local level of 8.8395 or further to 8.5220.
According to our latest projection, last week the market almost perfectly closed the gap caused by the lowering of the rating by Moody’s. Rejection of level 3.3298 provoked a strong reaction of demand and now price is again above the 3.3570 resistance. If the growth will continue, the potential target for long positions may be around the level of 3.4023.
To invest in exotic pairs take advantage of low spreads which offers broker InterTrader, which at the time of the creation of the analysis for each instrument were 10.3, 3.4 and 27 pips.
Last week, a strong growth impulse overcame the downward trend line which could be the first sign of a change in market sentiment. As it turned out, the demand was too weak to break a very important zone of resistance around the 11.2013 level and today the market returned below the downtrend line crossing at the same time local support and last week’s lows. Such market behaviour may be a forecast that declines will continue, for which a potential target can be the level of 10.8779.