ALL: Little Scope For Sustained Appreciation

Having rebounded from its all-time lows in the ALL139.00/EUR area in the first quarter of 2010 to trade as high as ALL135.55/EUR at one point in mid-May, the Albanian lek has since traded within a tight sideways band between ALL135.00-137.71/EUR. While we expect the unit to continue range trading in the near term, we stress that a break above resistance in the ALL135.00/EUR area over the coming days would be a bullish signal, presaging further gains back towards ALL130.00/EUR in the first instance. On the other hand, a fall through support at ALL137.00/EUR would portend near-term weakness for the currency, setting off depreciation back towards support at ALL139.00/EUR in the first instance.

To read the full article, please choose one of the following options: