Forex-Metal Daily Analysis -23/06/2011


Master Trader
Jul 12, 2010
Dramatic drop of the pound.

Asian and European trading sessions:
Euro: During the morning trading the euro was supported by the strengthened market participant’s hope for the positive outcome of the Greek external debt problems.
Therefore, the EUR/USD grew and reached the $1.4440 maximum. But according to the opinion of some experts, technical default is still a possible outcome for Greece.
British Pound: Wednesday saw a considerable decrease of the pound. The today publication of the last minutes of the BoE meeting pressured the sterling. According to the released results of the votes, only two members voted for the increase of the principal rate and seven votes were in favor of leaving the principal rate unchanged.
As a result, the GBP/USD pair dropped to the $1.6100 minimums.
Japanese Yen: The USD/JPY pair traded at the level of Y80.00.
Oil: Oil price decreased to $93.91 level per barrel.
Gold: Gold traded around the $1,546.70 range per ounce.

American trading session:
US Dollar: The speech of the head of the FRS, Ben Bernanke, had a serious impact on the market dynamics. Ben Bernanke forecasted a gradual rehabilitation of the US economy.
According to the released FOMC decision, the principal rate was left unchanged at the previous level of 0.25%. As a result, the EUR/USD decreased to the $1.4340 level, and the GBP/USD closed the day around the $1.6060 mark.
Technical analysis for 23/06
The pair stays above 1.42996, it may bring pair to test 1.44400. If the pair declines below 1.42996 the pair will decline to 1.41780.
Resistance: 1.44400, 1.46222, 1.47342
Support: 1.42996, 1.41780, 1.40690
The pair has declined to 1.60322. This is a support level and the price should roll back to 1.61029.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair will be able to reach 0.85939 in case 0.84685 is broken. If the pair stays below 0.84685 the pair will decline to 0.83541.
Resistance: 0.84685, 0.85939, 0.87214
Support: 0.83541, 0.82483, 0.81356
If the pair breaks 80.438 the pair will try to reach Moving Average (100) at 81.399.
Resistance: 80.438, 81.399, 82.219
Support: 79.707, 79.070, 78.345
The pair is declining to 1.05332. If this level is broken the pair will decline to 1.04407.
Resistance: 1.06164, 1.07005, 1.07739
Support: 1.05332, 1.04407, 1.03535