Forex-Metal Daily Analysis -25/05/2011


Master Trader
Jul 12, 2010
Positive Euro-zone statistics rendered temporary support for the euro.

Asian and European trading sessions:
Euro: The euro started its growth during the Asian trading session and reached the $1.4060 mark. After the release of the European statistics on Tuesday, the euro continued its growth. German IFO – Business Climate, Current Assessment and Expectations for May turned out to be above expectations. As a result, expectations for the increase of the Euro-zone principal rate reinforced.
According to the experts’ expectations, the European budget crises would reinforce and return to the focus of the market very soon.
British Pound: Publication of the UK weak fundamentals on Tuesday pressured the sterling. Increase of the Public sector net borrowing volume had a negative impact on the national currency. But major pressure came from the statement of the Moody’s credit agency about the decrease of the credit ratings of the number of British banks.
At the same time the CBI Reported sales happened to be above forecasts: 18 against expected 11. Therefore, the GBP/USD grew to the $1.6180 level.
Japanese Yen: The USD/JPY pair showed minimums at the level of Y81.60 and started to rehabilitate.
Oil: Oil rate demonstrated strengthening due to the released forecast of Goldman Sachs and Morgan Stanley with expectations for the increased Brent oil prices.

American trading session:
US Dollar: Greenback was pressured during the American session after the release of the negative Richmond Fed Manufacturing index, which dropped to -6 against the positive forecast of 9.
As a result, the EUR/USD pair grew and reached the $1,4130 maximum and the GBP/USD pair reached the $1,6200 mark.
Technical analysis for 25/05
The pair has broken daily channel and aiming to 1.39600.
Resistance: 1.40690, 1.41780, 1.42996
Support: 1.39600, 1.38554, 1.37486
The pair stays below 1.62050 it will bring pair to decline to 1.60322.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
If the pair breaks 0.88418 the pair will rise to 0.89635.
Resistance: 0.88418, 0.89635, 0.91079
Support: 0.87214, 0.85939, 0.84685
The pair is trying to decline below 81.399. It will bring pair to 80.438.
Resistance: 82.219, 83.065, 83.933
Support: 81.399, 80.438, 79.707
The pair has declined to 1.05322. 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