Forex-Metal Daily Analysis – 27/10/10

The sterling increased as the positive UK economic activity was released. Asian and European trading sessions:
Euro: The EUR/USD pair traded in the range of $1,3900-$1,3980.
US Dollar: On Tuesday the greenback showed stabilization against the euro. The speculations, that the actions of the FRS could be effective, reinforced. 
British Pound: The sterling showed some stabilization as the expectations for the positive release of the UK economic docket influenced the market. The UK Gross domestic product for the third quarter was predicted to increase for 0.4%. The GBP/USD pair grew to the $1,5790 level.
After the release of the report, which showed that the GDP doubled the forecast and grew for 0.8%, the sterling continued to increase against the greenback. According to the expectations, the Bank of England would expand its quantitative easing policy.
The sterling was also supported by the S & P credit agency, since the “AAA” rating was confirmed for the UK and the forecast has been changed to stable. The pound increased against all its competitors as well.
Japanese Yen: The USD/JPY continued to stabilize around the level of Y81.00.
Oil: The oil traded around the level of $82.00 per barrel.
Gold: The gold rate traded in the range of $1,335.20 mark per ounce. American trading session:
US Dollar: The following positive US fundamentals were released later during the day: The consumer confidence for October increased to 50.2 against its forecast of 49.5. The house price index grew for 0.4% against the forecasted drop for 0.2%. In addition, the Richmond Fed manufacturing index grew to the level of 5, while the forecast was at the level of only 1. The greenback grew against the euro, due to the increased inflation expectations.
Technical analysis for 27/10 EURUSD
The pair is declining. Support maybe met at 1.37486.
Resistance: 1.38554, 1.39600, 1.40690
Support: 1.37486, 1.35984, 1.34882
The pair is trading below resistance 1.58543. It will bring pair to 1.56722.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53301
If the pair breaks 0.98750 the pair will rise to 0.99608. If the pair stays below 0.98750 the pair will decline to 0.97847.
Resistance: 0.98750, 0.99608, 1.00466
Support: 0.97892, 0.97130, 0.96480
The pair is aiming to 82.219. If the pair breaks this level the pair will rise to 83.065.
Resistance: 82.219, 83.065, 83.933
Support: 81.162, 80.438, 79.707
The pair is declining to 0.96464.
Resistance: 0.97715, 0.98436, 0.99207
Support: 0.96464, 0.95154, 0.93788