Forex-Metal Daily Analysis -22/03/2011


Master Trader
Jul 12, 2010
Demand for the risky assets is coming back.

Asian and European trading sessions:
Euro: The EUR/USD pair traded in the range of $1.4145-$1.4185. Market participants are waiting for the Euro-zone leaders’ summit, planned for the end of this week in Brussels, aimed to discuss the ways out of the crises.
The EUR/USD pair reached its 4-months maximum at the level of $1,4240, due to the reinforced expectations for the possible increase of the interest rate at the next ECB meeting.
US Dollar: US dollar was supported on Monday, as a save-heaven currency.
British Pound: The pound followed strengthening of the euro and the GBP/USD pair traded in the range of $1.6200-$1.6250. Maximum was reached at the level of $1,6327.
Japanese Yen: Japanese financial markets were closed on Monday due to celebration of the national holiday.
Japanese yen continued to stay under pressure, since interventions of G7 countries prevented the yen rate from growing. According to the released information, the situation at the Fukusima NPP was stabilizing.
The USD/JPY pair traded at the level of Y81.00.
Oil: Oil rate increased and traded above the $100 level per barrel. Instability in Libya pushed the oil prices higher.
Gold: Gold reached the $1,433.10 maximums per ounce against the background of the weakening greenback.

American trading session:
Australian Dollar: Australian dollar rate grew, due to the increased oil prices. Other commodity currencies, such as New-Zealand dollar and Canadian dollar increased as well.
Technical analysis for 22/03
The pair is aiming to median line at 1.42996 which is a resistance level for the pair. After testing this level the pair may roll back to 1.41780.
Resistance: 1.42996, 1.44400, 1.46222
Support: 1.41780, 1.40690, 1.39600
The pair is aiming to 1.63316, if this level is broken the pair will rise to 1.64636.
Resistance: 1.63316, 1.64636, 1.65706
Support: 1.62050, 1.60322, 1.58543
The pair is trading between 0.91079 and 0.89635.
Resistance: 0.91079, 0.92026, 0.93069
Support: 0.89635, 0.88417, 0.87214
The pair is trying continue declining and aiming to 80.438.
Resistance: 81.399, 82.219, 83.065
Support: 80.438, 79.707, 79.707
The pair is trying to recover. Resistance 1.01873, support 1.00031.
Resistance: 1.00907, 1.01744, 1.02705
Support: 1.00067, 0.99207, 0.98436