Forex-Metal Daily Analysis -01/02/2011

Instability in Egypt influences the market.

Asian and European trading sessions:
Euro: The beginning of the trading week saw the strengthening of the euro. Today the following positive fundamentals have been released: The Euro-zone expected Consumer price index in January reached the 2.4% (it’s 2-year maximum) against the forecasted 2.3%. According to some experts’ opinion, the ECB might increase the principle interest rate. As a result, the EUR/USD pair grew to the $1,3700 level.
Japanese Yen: Political problems in Egypt increased demand for the save-haven currencies, and the yen rate stabilized.
The USD/JPY rate stabilized at the Y82.30 mark.
Australian Dollar: According to the experts’ expectations, and against the background of the recent flood, the Reserve Bank of Australia will keep the interest rate unchanged at the previous level of 4.75%. The Australian dollar is under pressure since the instability on Egypt might decrease the demand for the risky assets.
New-Zealand Dollar: The negative data, released on Sunday, pressured the national currency: building permits decreased for 18.6% against the forecasted drop for 1.3%.
Oil: Instability in Egypt and concerns over the possibility of its spreading on the neighboring countries rendered pressure on the oil price, which pushed it higher to the $89.54 mark per barrel. Its rate reached maximums above the $90.20 level.
Gold: Gold traded around the $1,331.90 level per ounce.

American trading session:
Euro: The EUR/USD pair grew and reached maximums at the $1,3740 mark.
US Dollar: The US dollar was under pressure from the indices growth and increased oil prices.
British Pound: The sterling showed considerable growth following the greenback weakening and reached maximums at $1.5920.


Technical analysis for 01/02

The pair is under resistance 1.37486. If the pair stays above this level the pair will rise to 1.38554. If the pair stays below 1.37486 the pair will decline to 1.35984.
Resistance: 1.37486, 1.38554, 1.39600
Support: 1.35984, 1.34882, 1.33143
The pair is trying to break 1.60322 and aiming to 1.61129.
Resistance: 1.60322, 1.62050, 1.63316
Support: 1.58543, 1.56722, 1.54842
The pair has broken 0.95125 and aiming to 0.93435.
Resistance: 0.95125, 0.96574, 0.98114
Support: 0.93435, 0.91658, 0.89710
The pair has broken 82.219 and aiming to 81.399.
Resistance: 82.219, 83.065, 83.933
Support: 81.399, 80.438, 79.707
The pair is trying to grow. If the pair stays above 1.00067 the pair will rise to 1.00907.
Resistance: 1.00067, 1.00907, 1.01744
Support: 0.99207, 0.98436, 0.97424