Forex-Metal Daily Analysis -03/02/2011

Sterling demonstrates strong growth.

Asian and European trading sessions:
Euro: Euro traded around its maximums against the US dollar. The Euro-zone Producer price index for December showed unexpected growth: 53.7 against the forecasted 49.5. The EUR/USD reached the $1.3861 maximum. Market participants fixed their profits on euro long positions.
US Dollar: Increased risk appetites continued to pressure the greenback on Wednesday.
British Pound: Market participants saw a strong growth of the sterling today. Several factors rendered support for this rally. The UK construction PMI demonstrated a considerable growth: 53.7 against the expected 49.5. As a result, the GBP/USD pair reached maximums at the level of $1,6229.
The announcement of the Bank of England member, Mr. Sentance, that the interest rates should be increased, supported the sterling as well. The pound increased against the major currencies.
Japanese Yen: As a save-haven currency, the yen rate dropped against the major currencies.
The USD/JPY pair traded around the Y81.40 level.
Oil: The oil traded at the level of $91.09.

American trading session:
Euro: After reached maximums, the euro was pressured by the released Ireland rating by the “S&P” agency, which was reduced again. The EUR/USD closed the trading day at the level of $1,3770.
US Dollar: The greenback changed its trading direction and showed some growth. The ADP employment for January surprised market participants: 187K growth compared to the forecasted 140K.
New-Zealand Dollar: The published employment data happened to be very negative, and the New-Zealand dollar dropped against the American dollar. The unemployment rate for the 4-th quarter rose to 6.8% against the expected 6.5%.


Technical analysis for 03/02

The pair was unable to touch Fibonacci 61.8% resistance at 1.38890 and rolling back to 1.37486.
Resistance: 1.38554, 1.39600, 1.40690
Support: 1.37486, 1.35984, 1.34882
The pair is working out upside down Head and Shoulders figure. 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 has declined to support level and minimum of 01.03.2011 at 0.93187 and rolling back to 0.94381.
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 rolled back to 1.00907 and aiming to 1.01744.
Resistance: 1.01744, 1.02705, 1.03535
Support: 1.00907, 1.00067, 0.99207