Forex-Metal Daily Analysis -01/02/2012


Master Trader
Jul 12, 2010
The unemployment in the EU reached the record level of 10.4%.

Asian and European trading sessions:

Euro: During the European session, the euro strengthened against the U.S. dollar to $1.3196 level. The support for the Euro currency was provided by the speech of the Prime Minister of Greece Mr. Papademos Lucas, who expressed his hope that an agreement with the European Union, the European Central Bank and the International Monetary Fund can be achieved by the end of the week. At the European trading session the Euro was pressured by the macroeconomic data, which was worse than expected and, therefore, reduced demand for risky assets. In particular, German retail sector reported decrease in sales by 0.9% and unemployment in the EU even matched the level of forecasts, but at the same time reached record levels for the region of 10.4%. The EUR / USD pair showed high above $ 1.3210 at the beginning of the session, but then dropped to lows of $1.3160.

US Dollar: In his speech the Greece Prime Minister Papademos pointed out that the in negotiations with private creditors is in a positive progress. This news provided some support for the risky assets and reduced demand for the U.S. dollar as a currency with a “safe haven” status.

British Pound: The GBP/USD pair traded today in uptrend range of $1.5713 to $1.5786 during both sessions and recorded its European trading session’s maximum by reaching several times the level of $1.5792.

American trading session:
US Dollar: The U.S. dollar boosted against its competitors after a weak report on S&P/Case-Shiller price index, which was reduced in November by 3,7% with expectations of -3,2%.

Oil: The oil prices had a quite volatile day. They fell after strong growth against a background of adverse macro in U.S., then rose to 101.24 dollars and finally, dropped to 98.08 dollars per barrel.

Gold: The cost of February’s Gold futures on COMEX grew today to 1747.48 dollars for the ounce.

Technical analysis for 01/02

The pair has declined to 1.30277. If the pair stays above this level the pair will rise to 1.33143.
Resistance: 1.31674, 1.33143, 1.34882
Support: 1.30277, 1.28630, 1.25690
The pair has MACD convergence that may support pair to start upwards corrections. The pair is aiming to 1.58543.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
The pair has found support at 0.91079 and rolling back to Moving Average (500) at 0.93069.
Resistance: 0.93069, 0.93949, 0.95074
Support: 0.92026, 0.91079, 0.89635
The pair has broken support 76.463 and aiming to 75.425.
Resistance: 76.463, 77.539, 78.345
Support: 75.425, 74.414, 73.573
The pair has broken triangle and aiming to 1.07005.
Resistance: 1.07005, 1.07739, 1.08413
Support: 1.06164, 1.05332, 1.04407