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Week ended 1st July, 2011 – Currencies this week .

After many weeks EURO rose against the dollar but the better one was it’s strength against Swiss FRANC. It saw a big drop against EURO after 2009. In the early days of the week currencies were in pressure due to crucial vote in Greece, but things ended quite well. Many currencies strengthened this week against the dollar. WON strengthened against the dollar in the initial days due to rise in current-account surplus. REAL was one of it's strongest level this week.

Coming week

I was expecting a rise in EURO, but it got some resistance at 1.45. It looks to me EURO is following a trend and 1.46 level is crucial for it. In the downside 1.40 is still intact.
AUD’s move was better from it’s earlier moves. Though it broke good resistance level of 1.075 but I will be looking it to break 1.085 level. In the downside 1.05 is good support.
I was pretty much sure that USD is not going to break 76-77 level. Now it is time to look that whether it breaks it’s support of 73.5 level in the downside. Ultimately it has to break 73 level to prove the pattern which it is making during last few years.
Swiss FRANC is getting good resistance at 0.85 level and then it will face resistance at 0.86 level.
Last day I told that Brazilian REAL is going to make lows as such it is trying to break the support of 1.56 level. In coming week I do not expect any quick drop from it, but to make the pattern of lower highs and lower lows it needs to drop.
Mexican PESO got good resistance at 12 and like it’s Brazilian counterpart it is trying to drop at lower levels. It has a good support at 11.5 level, in the upside it has to first cross 11.75 level.

If things go this way in Europe then in coming days we can expect more rise in many of these currencies. In this moment drops in USD are good for overall financial market, but I am not completely sure about these drops in future. There are some crucial levels ahead, which are going to decide the matters.

Sorry for brief market review this week.

NOTE :  Please see the disclaimer below this blog .


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