ExoticTrading is a series of analyses, 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.
For several days, the market oscillates around a very important resistance 11.4420 coinciding with the line of the downtrend. Given that during the nearly two-month of growth has not occurred any deeper downward correction, so in the near future we could reject the current level and start declines, at least in the vicinity of 11.0660.
For several weeks, we are seeing dynamic growth as a result of which the market broke out from ongoing since last year, the downward channel and found itself on the levels at which the last time we were in March 2009.
Considering that since the breakout from the channel, market has not tested the upper limit from the top, and that still has not occurred here any deeper correction in the near future we could expect the emergence of a strong supply response and re-test at least the neighbourhood level 8.8400 .
To invest in exotic pairs can take advantage of low spreads the broker InterTrader that at the time of the creation of the analysis for each instrument in turn were 31.0, 13.3 and 1 pips.
As a result of lasting nearly four months increases we found we are now around local area supply. Because in the course of the ongoing for two weeks growths there had been no downward correction and now we see strong weakness of demand – in the near future expect rejection of the current zone and falls even in the vicinity of local support 1.3957 coinciding with the level of 61.8% correction Fibonacci of the November increases .