Forex-Metal Daily Analysis -23/02/2011


Master Trader
Jul 12, 2010
Demand for the save-heaven assets is growing.

Asian and European trading sessions:
New-Zealand Dollar: The devastating earthquake, that happened in New-Zealand, pressured the national currency rate and decreased the market participants’ willingness to take risks.
Euro: The EUR/USD pair traded around the $1.3600 level. Minimums were reached at the $1.3524 mark.
The euro managed to rehabilitate after the statement of the ECB representative Yves Mersh, who mentioned that ECB would soon move on to tightening of the monetary policies
US Dollar: The US dollar rate was supported by the political problems in Middle East, as a save-heaven currency. During the last couple of weeks the ruling regimes of Egypt and Tunisia were overthrown.
British Pound: The GBP/USD pair traded in the range of $1.6130 - $1.6180.
Japanese Yen: After the announcement that the credit agency “Moody's Investors Service” reduced the credit rating of Japan from stable to negative, the Japanese yen rate dropped. Yen was overall supported on Tuesday as a save-heaven currency.
The USD/JPY pair traded in the range of Y82.80 - Y83.23.
Oil: Continuing riots in Libya reinforced concerns over the oil supply, and the oil prices grew and reached their 2-year maximums. Oil traded at the level of $93.97 rate per barrel.
Gold: Gold rate is correcting itself after it has demonstrated considerable growth. Gold is trading at the level of $1400.6.

American trading session:
Swiss Frank: Swiss Frank continued to strengthen, being supported as a save-heaven currency.
US Dollar: The released US fundamentals did not have a serious impact on the trading dynamics. The Consumer confidence level turned out to be above forecasts: 70.4 against the expected 65.5. Richmond Fed manufacturing index grew amid expectations as well: 25 against forecasted 18.

Technical analysis for 23/02
The pair returned to Moving Average (500). The pair is aiming to 1.37486.
Resistance: 1.37486, 1.38554, 1.39600
Support: 1.35984, 1.34882, 1.33143
The pair is aiming to 1.62050.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair may decline to 0.93435.
Resistance: 0.95125, 0.96574, 0.98114
Support: 0.93435, 0.91658, 0.89710
The pair is aiming to triangle’s bottom at 81.938.
Resistance: 83.065, 83.933, 84.866
Support: 82.219, 81.399, 80.438
The pair has declined to 0.00067. The pair may decline to median line at 0.99611.
Resistance: 1.00907, 1.01744, 1.02705
Support: 1.00067, 0.99207, 0.98436