Forex-Metal Daily Analysis - 24/08/2011


Master Trader
Jul 12, 2010
Willingness to take risks increased today.

Asian and European trading sessions:
Euro: After the minimums of $1.4362 the EUR/USD strengthened to $1.4487. After the released German Industrial PMI index, which increased in August to 52 above expectations of 50.6, the euro grew to $1.4500. The Composite Euro-zone PMI remained at the previous level of 51.1 despite its lower forecasts.
Nevertheless, the euro was pressured by the publication of the German ZEW index, which dropped unexpectedly to the minimums of -37.6 below the experts’ predictions.

US Dollar: Greenback fell below its competitors as a result of the speculations that the third round of quantitative easing would be introduced during the conference on August 26th.

British Pound: The GBP/USD grew and reached the $1.6571 maximums.
Japanese Yen: The USD/JPY stepped back from Y76.95 to Y76.50 area. Speculation of the possible intervention reinforced.
Gold: Gold is trading near the $1875.00 level per troy ounce, slightly retreating from a session low of $ 1872.46. This morning has been updated historical maximum of $ 1917.90 per troy ounce.

American trading session:
US Dollar: Negative American statistics was released during the second part of the day. The new home sales volume dropped below expectations.

Technical analysis for 24/08
The key level for the pair is 1.40690, if this level is broken the pair will decline to Fibonacci 61.8% at 1.38867. If the pair breaks 1.44406 the pair will rise to 1.46222.
Resistance: 1.44400, 1.46222, 1.47342
Support: 1.42996, 1.41780, 1.40690
MACD divergence doesn’t let pair continue rising. If the pair declines below 1.64636 the pair will decline to 1.63316.
Resistance: 1.65706, 1.67165, 1.68756
Support: 1.64636, 1.63316, 1.62050
The pair’s resistance is 0.80313, support 0.77849.
Resistance: 0.80313, 0.81356, 0.82483
Support: 0.79115, 0.77849, 0.76605
The pair has declined to the next support level at 76.463. If this level is broken the pair will decline to 75.425.
Resistance: 77.539, 78.345, 79.070
Support: 76.463, 75.425, 74.414
The pair is trying to recover. Strong resistance maybe met at the median line 1.06164.
Resistance: 1.05332, 1.06164, 1.07005
Support: 1.04407, 1.03535, 1.02558