The market started to fall sharply during Japanese session; this may be conditioned by the third explosion at Fukushima nuclear plant that provoked a panic on the markets. New future contract is becoming more popular, but the situation is quite uncertain. In the medium term I expect the dollar to advance against the euro, but it is difficult to define the reverse point amid current situation. At the moment I expect the euro to recover after the Japanese session, recovery duration will pretty much depend on buyers’ support after European session opening. Current analysis shows that the pressure is very strong, therefore the euro is expected to advance to 1.3965 and then resume declining.
Trading recommendations:
- downside phase is likely to be formed, therefore I recommend to look for middle-term selling points.
