Forex-Metal Daily Analysis -29/03/2011


Master Trader
Jul 12, 2010
Expectations for interest rate increase ruling the market.

Asian and European trading sessions:
Euro: During the morning trading on Monday the EUR/USD pair traded in the range of $1,4020-$1,4070. Euro was under pressure due to the influence from the statement of the head of the Philadelphia FRS regarding the necessity of reinforcing the US credit policy.
Political instability with the leading German coalition rendered additional pressure on the euro.
US Dollar: The US dollar strengthened on Monday morning. The dollar was also supported by the expectations for the strong US economic data release this week. During the European trading session the dollar rate grew and consolidated.
British Pound: The GBP/USD pair traded in the range of $1,6000-$1,6020.
Japanese Yen: Japanese yen showed decrease on Monday against the major currencies, since the radioactive contamination risk at the nuclear power plant deceased. Demand for the save-heaven currencies dropped, which pressured the yen as well.
The USD/JPY rate grew to the maximums of Y81.85.
Oil: Oil rate dropped to $103.80 marl per barrel. Later on the price increased.
Gold: Gold price decreased to the $1,415.60 level per ounce.

American trading session:
Euro: During the American trading session the market dynamics changed. After the statement of the Jean-Claude Trichet the expectations for the interest rate increase by the ECB reinforced and the euro strengthened. As a result, the EUR/USD pair reached maximums of $1.41.
British Pound: The sterling followed the euro strengthening, and the GBP/USD rate grew to the $1,6000 level.

Technical analysis for 29/03
The pair is declining. Support maybe met at 1.39600.
Resistance: 1.41780, 1.42996, 1.44400
Support: 1.40690, 1.39600, 1.38554
The pair is declining and support maybe met at Moving Average (200) 1.58543.
Resistance: 1.60322, 1.62050, 1.64636
Support: 1.58543, 1.56722, 1.54842
The pair tried to break 0.92026. After the second testing this level maybe broken, then the pair will try to reach 0.93069.
Resistance: 0.92026, 0.93069, 0.93949
Support: 0.91079, 0.89635, 0.88417
The pair is trying to rise to Moving Average (200) at 82.219.
Resistance: 82.219, 83.065, 83.933
Support: 81.399, 80.438, 79.707
The pair has broken 1.01744 and risen to 1.02705. The pair may return to 1.01744 before continue rising.
Resistance: 1.02705, 1.03535, 1.04407
Support: 1.01744, 1.00907, 1.00067