Forex-Metal Daily Analysis - 27/07/10

[Forex-Metal]

Uncertainties of the stress-test results temporarily pushed the euro lower.

Asian and European trading sessions
Euro: According to the stress-test results 7 European banks out of 91 banks from 20 countries, which were being examined, did not satisfy with the applied requirements and needed additional capital in the amount of 3.5 billion Euros. Nevertheless, according to the forecasts of Goldman Sachs Group Inc. the additional needed capital was expected to be 38 billion Euros, and Barclays Capital predicted the additional needed capital in the amount of 85 billion Euros.
The EUR/USD pair dropped to the $1.2888 mark, but later on the rate managed to rehabilitate to the $1.2940 level.
British Pound: The British Pound continued its rally from the previous week, and Friday’s positive UK fundamentals extended their influence on the sterling. The GBP/USD showed a steady growth to the $1.5500 maximums.
The GBP Hometrack Housing Survey, released on Sunday, showed unexpected decrease, but according to the experts’ opinion, this drop in prices reflected a “turning point for the housing market”.
US Dollar: The greenback dropped against the major currencies following the rise in the risk appetites.
Japanese Yen: The Japanese yen weakened as the demand for the save heaven currencies dropped. The USD/JPY rate showed maximums at the level of Y87.70, and then dropped to the Y86.80 mark.
Australian Dollar: The Australian dollar trades at the level of its 2-month maximums against the American dollar due to the expectations for the Consumer price index in Australia, which is predicted to show considerable growth, which in turn might lead to the principal rate increase by the RBA.
Oil: Oil rate grew on Monday morning above the level of $79.00 per barrel as stock markets increased. During the European session the oil prices decreased to $78.00 per barrel.

American trading session
US Dollar: The US new home sales in June annualized turned out to be at the level of 330K, when the expected growth was only up to 310K, which supported the growing risk appetites as well.

Technical analysis


EURUSD
The pair is aiming to the second level of Fibonacci retracement of 38.2% at 1.31133, if 1.30277 is broken.
Resistance: 1.30277, 1.32285, 1.34334
Support: 1.28630, 1.27009, 1.25690
GBPUSD
The pair is testing resistance at 1.5484 again. If the pair breaks this level and closes higher, the pair may rise up to 1.56722. If the pair breaks 1.52523, the pair will decline to 1.50581.
Resistance: 1.54842, 1.56722, 1.58543
Support: 1.52523, 1.50581, 1.48532
USDCHF
If the pair stays above 1.05139 the pair will rise to 1.07258. If the pair stays below 1.05139 the pair will decline to 1.03987.
Resistance: 1.06179, 1.07258, 1.08210
Support: 1.03987, 1.02747, 1.01498
USDJPY
The pair is trading in the narrow range between 87.675 and 86.345. Once 86.345 is broken, the pair will decline to 85.161.
Resistance: 88.640, 90.045, 91.254
Support: 87.014, 86.095, 85.161
AUDUSD
If the pair breaks 0.9028 the pair will rise up to 0.9177. MACD divergence shows that the pair may roll back, support at 0.8724.
Resistance: 0.90285, 0.91773, 0.93357
Support: 0.89029, 0.87243, 0.82723