Forex-Metal Daily Analysis - 20/07/10

[Forex-Metal]

Demand for the US dollar, as a save haven currency, drops.

Asian and European trading sessions.

Euro: During the Asian trading session we saw the decrease of the euro rate as the rating agency Moody’s reduced the credit rating of Ireland to Aa2 with the stable forecast.
The EUR/USD pair showed minimums around the $1,2900 level.

The European stress-test results will be published on the 23-d of July. Some experts expressed their concerns that even if the stress-test results would turn out positive, market participants would consider these results inaccurate.

During the European trading session the euro started to show some growth due to the weakening of the US dollar as the negative US fundamentals were expected.

British Pound: The GBP/USD pair also showed some weakness and traded around its minimums of $1.5270.
Japanese Yen: Due to the national holiday in Japan, the financial markets were closed on Monday. As a result the morning trading volume was minimal.

The yen was supported as a save haven currency, and reached its 8-months’ maximum against the US dollar. Nevertheless, the rate decreased after the Bank of Japan statement of its intentions to ease the monetary policy.

Canadian Dollar: According to the interest rate expectations, the Bank of Canada might increase the interest rate to 0.75% level. As a result, the Canadian dollar reacted with an increase.

Australian Dollar: Due to the up-coming Australian Parliament elections date, the concerns over the possibility that the principal interest rate would not be raised next month, increased. As a result, the Australian dollar rate dropped.

Oil: The oil rate decreased to the level of $75.90 per barrel during the morning trading due to the concerns over the slow-down of the US economy rehabilitation rate.

Gold: The gold price dropped to the $1,187.60 mark per troy ounce.

American trading session:
Euro: By the end of the trading day the euro managed to strengthen against the major currencies. Investors expect that the release of the stress-test results would reduce the concerns over the Euro-zone budget deficit problems.

Technical analysis

EURUSD
The pair is aiming to Moving Average (200) at 1.3196.
Resistance: 1.3028, 1.3229, 1.3433
Support: 1.2863, 1.2701, 1.2569
GBPUSD
The pair tested 1.5484 and rolled back to 1.5252. If the stays above 1.5252 the pair will rise to 1.5484.
Resistance: 1.5484, 1.5672, 1.5484
Support: 1.5252, 1.5058, 1.4853
USDCHF
If the pair breaks 1.0399, the pair will decline to 1.0275. Strong resistance at 1.0821.
Resistance: 1.0514, 1.0618, 1.0726
Support: 1.0399, 1.0275, 1.0150
USDJPY
The pair may decline to 86.10, if the pair stays below 87.01. If the pair breaks 86.10 it will bring the pair to 85.16.
Resistance: 88.64, 90.04, 91.25
Support: 87.01, 85.16, 84.26
AUDUSD
The pair has broken 0.8724 and aiming to 0.8903.
Resistance: 0.8903, 0.9028, 0.9177
Support: 0.8724, 0.8576, 0.8424