Forex-Metal Daily Analysis - 14/07/10

[Forex-Metal]

The credit rating for Portugal was downgraded.

Asian and European trading sessions:
Euro: Due to the decision of the Moody’s rating agency to downgrade the Portugal rating to A1 with a stable forecast, the euro rate was hit by the negative investors’ sentiments. At the same time the European Union warned Finland, Bulgaria, Cyprus and Denmark to reduce their budget deficits.
The negative expectations for the German and European ZEW Survey (Economic sentiment) for July added the negative influence on the euro.
The speculations regarding the European stress-tests’ results show growing concern. Therefore, the EUR/USD pair dropped to the range of $1,2530.
US Dollar: The safe heaven currencies grew as the government of China announced of its intentions to reduce the speculative real estate investments. As a result, the US dollar strengthened against its competitors.
British Pound: The sterling followed the euro and set its minimums at the level of $1,5000 against the US dollar. But the sterling managed to increase as the unexpected rise in price growth in Great Britain was released.
Australian Dollar: The possible demand decrease for the commodities resulted in the drop of the Australian dollar rate.
Oil: As the Asian stock markets decreased, the oil rate dropped to $74.60 per barrel.

American trading session:
US Dollar: During the second part of the day, the investors’ interests shifted and the US dollar rate switched to the negative dynamics.

Euro: At the same time the euro was supported by the positive corporate US reports and the successful Greek bond auction.


Technical Analysis

EURUSD
The pair has broken 1.2701. The pair may try to test Moving Average (100) at 1.2789.
Resistance: 1.2701, 1.2863, 1.3028
Support: 1.2569, 1.2391, 1.2181
GBPUSD
The pair is trading near resistance 1.5252.
Resistance: 1.5252, 1.5484, 1.5672
Support: 1.5058, 1.4853, 1.4668
USDCHF
The pair may rise to 1.0726 if 1.0618 will be broken. If the pair breaks 1.0514, the pair will decline to 1.0439.
Resistance: 1.0618, 1.0726, 1.0821
Support: 1.0439, 1.0380, 1.0275
USDJPY
The pair is aiming to 90.04 if stays above 88.64.
Resistance: 90.04, 91.25, 92.58
Support: 88.64, 87.01, 85.16
AUDUSD
The pair has risen to Moving Average (200) at 0.8724. If the pair stays above this level, the pair will rise to 0.8903.
Resistance: 0.8903, 0.9028, 0.9177
Support: 0.8724, 0.8576, 0.8424