Forex-Metal Daily Analysis -02/02/2011

Increased demand for the high-risk assets pressures the greenback.

Asian and European trading sessions:
Australian Dollar: According to the expectations, the Reserve Bank of Australia left the principal rate unchanged at the level of 4.75% for the third month. The RBA continued to have a very favorable view of the Australian economy. As a result, the Australian dollar almost reached parity versus the American dollar.
Euro: Weakened greenback brought the EUR/USD pair to the maximums of $1.3700. During the European session the pair reached maximums above the $1.3800 mark after the released Euro-zone PMI manufacturing data (57.3 against the forecasted 56.9).
US Dollar: On Tuesday the greenback continued its negative dynamics against its competitors, since the demand for the save-haven assets dropped, as the world economy rehabilitation growth rate increased.
British Pound: GBP/USD pair traded above the $1.6000 levels. The sterling showed considerable growth, even though the UK fundamentals were rather mixed today. The PMI manufacturing data was much stronger than expected: 62.0 against the forecasted 58.0. Expectations for the increase of the principal rate by the Bank of England supported the pound as well.
As a result, the GBP/USD reached the $1.6140 level.
Japanese Yen: The USD/JPY rate decreased to the Y81.45 mark.
Oil: Oil prices reached levels of $92.17 per barrel against the background of the general US dollar weakening.

American trading session:
US Dollar: The released today positive US data supported the increased demand for the risky assets. The ISM manufacturing read 60.8 against the expected 58.0.

Technical analysis for 02/02

The pair has broken 1.37486 and risen to 1.38554. Higher is Fiboncci 61.8% resistance at 1.38890. The pair may roll back after touching this level.
Resistance: 1.38554, 1.39600, 1.40690
Support: 1.37486, 1.35984, 1.34882
If the pair starts to work out upside down Head and Shoulders the end of the figure maybe expected at the 1.63316 but before that level the pair needs to break 1.62050.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair is aiming to support level and minimum of 01.03.2011 at 0.93187.
Resistance: 0.95125, 0.96574, 0.98114
Support: 0.93435, 0.91658, 0.89710
The pair has declined to support level at 81.399 and may roll back to 81.820.
Resistance: 82.219, 83.065, 83.933
Support: 81.399, 80.438, 79.707
The pair has broken 1.00907. The pair may roll back to 1.00907 before continues rising to 1.01744.
Resistance: 1.01744, 1.02705, 1.03535
Support: 1.00907, 1.00067, 0.99207