Trading Sideways In 2010

Having appeared to tentatively break through major trendline resistance at RON4.1000/EUR at the beginning of February and suggesting further upside potential in the short term, the Romanian leu subsequently weakened back inside its previous RON4.1000-4.3500/EUR trading range. The leu has since consolidated around the RON4.1200/EUR area, with the unit likely to remain at the weaker end of its dominant trading range (dating back to Q109) in the short term. However, should the unit take another stab at pushing through resistance at RON4.1000/EUR, with confirmation provided by a strong monthly close, we would reassess our short- and medium-term projections.

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