Weekly market review from Forex-Metal.

Forex-Metal

Master Trader
Jul 12, 2010
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In this issue:

1. Weekly market review from Forex-Metal.
2. Weekly technical analysis.
3. New Currency Pairs Added
4. Results of the "Jingle Bells" trading competition.
5. 30% trading bonus is on again!



1. Weekly review for 13 – 17. 12, 2010

Previous trading week saw greenback being pressured by various factors. On Monday after the announced information that the Chinese Government would not increase the interest rates, the stock market grew and the greenback was pressured. Possibility, that the agency Moody’s Investors Service Inc. would change the US credit rating forecast to negative, rendered additional pressure on the greenback. As a result, the EUR/USD maximum was reached at the $1.3435 level.
The pound showed similar dynamics to the euro. The sterling was pressured by the released weak UK Rightmove house prices, and the GBP/USD dropped to $1.5716. But the weakened greenback pushed the GBP/USD pair to the maximums of $1.5897.
Oil prices grew due to the fact that Bank of China did not increase the interest rate. Therefore, the speculations on increased demand for oil reinforced. The rate was around the $88.18 mark per barrel. It maximum was reached at $89.10 mark per barrel. Gold also demonstrated growth, and the price reached the $1395 level.
Euro continued to stabilize on Tuesday morning. Expectations for the strong European fundamental release on that day supported the euro. Eventually the Euro-zone ZEW survey (Economic sentiment) for December turned out to be above expectations: 15.5 against the forecasted 10.5. The EUR/USD pair consolidated around the $1,3450 mark. Its maximum was reached at the $1.3498 level. At the same time the sterling demonstrated growth and reached the $1,5900 level against the greenback. The released GB retail price indices for November showed higher levels, compared to expectations. The UK consumer price index grew above expectations as well.
Released US fundamentals supported the greenback, which started to rehabilitate against the euro and the pound. The US advance sales for November turned out to be 0.8% against the expected 0.6%. The US producer price index and US retail sales grew above forecasts as well. According to the expectations, at the FOMC meeting the rate was left unchanged at the level of 0.25%. The QE program would stay at the previous level of $600 billion. The results of the FOMC meeting did not render any special support to the greenback.
The EUR/USD pair started Wednesday with a decrease to the $1,3300 mark. The euro was pressured by the announcement of Moody’s Investors Service that the credit rating of Spain would be possibly reduced. Minimums were reached at the $1.3284 mark. Expectations for the release of the positive US fundamentals later during the day supported the greenback. The speculations regarding the possible increase of the interest rate at the next FOMC meeting reinforced. The released consumer price index turned out to be at the forecasted level of 1.1%.
The sterling also decreased on Wednesday and the GBP/USD pair dropped to $1,5720 level. After the release of the UK employment data, the GBP/USD dropped to $1.5528. The jobless claims change decreased for 1.2K against the expected decrease for 3.0K.
The release of the strong US fundamentals supported the greenback on the same day. The Empire manufacturing index for December grew and reached 10.57 level against the forecasted level of 5.00. US industrial production increased as well and hit the 0.4% level against the expected 0.3%.
The euro was under pressure on Thursday due to the debt problems of some of the EC countries that weigh on the whole EC situation. During the morning trading the EUR/USD pair traded around the $1,3200-$1,3240 range. Euro received additional pressure from the announcement of Moody’s Investors Service regarding the possibility of reducing current rating of the Greek government obligations. Market participants are waiting for the results of the EC meeting, which was taking place in Brussels.
The publication of the strong UK economic data rendered temporary support to the sterling. In particular, the UK retail sales indicators turned out to be positive, and the GBP/USD reached the $1,5620 level. But later on, the pound stepped back from the reached daily maximums.
According to the expectations, the Swiss National Bank left the principal rate unchanged on Thursday at the level of 0.25%. As a result, the national currency stepped back from the reached Wednesday’s maximums.
Expectations for the results of the EC summit pressured the precious metals as well. The gold rate reached maximums of $1386, and fell back to $1380 per ounce. The silver reached maximums of $29.21 and stepped back to $28.98 per ounce.
On Friday the US dollar managed to strengthen against almost all counterparts. The released US fundamentals rendered support for the greenback. The announcement that Moody's agency reduced the rating for Ireland for 5 levels down pressured the euro. As a result, the EUR/USD reached minimums at $1,3150. The GBP/USD pair decreased as well and reached the $1,5452 minimums.


Happy trading!


2. Weekly technical analysis for 20 - 24.12, 2010

EURUSD
The pair has broken support 1.33427 the next aim at Fibonacci retracement 38.2% at 1.30659.
Resistance: 1.33427, 1.37441, 1.41130
Support: 1.28004, 1.25667, 1.20280


GBPUSD
The pair is trading below Moving Average (100) 1.59962, it is a bearish sign. The pair may decline to Fibonacci retracement 23.6% at 1.53290.
Resistance: 1.59962, 1.64274, 1.68504
Support: 1.52523, 1.48532, 1.43344


USDCHF
The pair has broken resistance (green dash line). The pair may decline to 0.94580 if 0.96525 is broken.
Resistance: 0.99031, 1.01369, 1.04060
Support: 0.96525, 0.93770, 0.91074


USDJPY
The pair is trading above 83.330, it may bring pair to 84.849.
Resistance: 86.836, 90.909, 94.705
Support: 83.330, 80.244, 76.535


AUDUSD
The pair stays below 1.000031. It may bring pair to 0.97889. If 0.97889 is broken the pair will decline to 0.94048.
Resistance: 1.00031, 1.01873, 1.03847
Support: 0.97889, 0.94048, 0.89581



3. New Currency Pairs Added.

Three new currency pairs have been added to our trading platform this week. Clients will now be able to trade
CADCHF (Canadian dollar vs Swiss Franc),
EURNZD (Euro vs New Zealand Dollar), and
GBPNZD (Great Britain Pound vs New Zealand Dollar).

Forex-Metal clients can now trade more than 50 currency pairs with very tight spreads. To view Forex-Metal’s competitive spreads for all currency pairs, visit https://forex-metal.com/home/contract_parameters
Looking for a specific pair that we don't have? Talk to our support specialist at support@forex-metal.com and maybe we would be able to accommodate your trading needs.


4. Results of the "Jingle Bells" trading competition.

Our final trading competition for this year has begun. We welcome all registered participants and wish you all good luck. For all those who haven't joined the competition yet, the main details of the championship are:

Takes place from 22nd November 2010 to 24th December 2010

This is a demo competition - you are playing with virtual cash. But the prizes are absolutely real!
The prizes are as follows:
* 1st place — 500 USD;
* 2nd place — 250 USD;
* 3rd place — 100 USD.

Plus EVERY participant even if he is not a winner will receive a cash prize at the end of the competition. Absolutely everyone if welcome to participate. For more details and to register please visit this page: https://forex-metal.com/promotions/competition

The current results of the ongoing competition could be checked here:
https://forex-metal.com/competition_accounts_presentations


5. 30% trading bonus is on again!
Cash bonus promotion - “You nominate the amount of the bonus”. Get a cash bonus of up to $3000 when you deposit funds into your account for the first time.
The full bonus conditions are available here: https://forex-metal.com/discount/discount12
If you have just opened a trading account with us and fund your trading account within a week from the time of this message, you can receive a cash bonus in addition to your deposit.
If you would like to receive the bonus, please contact us at payments@forex-metal.com and confirm the bonus amount you would like to receive, at the time your account is being funded.