Forex-Metal Daily Analysis -16/02/2011

British pound receives support from UK fundamentals.

Asian and European trading sessions:
Euro: Today the EUR/USD pair demonstrated growth up to the $1.3530 maximums during the Asian trading session.
The released Euro-zone fundamentals were diverse. German GDP data for the fourth quarter turned out to be below expectations. And the Euro-zone overall GDP for the same period was below forecasts as well. The German ZEW survey (Economic sentiment) for February was at the 15.7 level against the expected 20.0, which pressured the euro. But, at the same time, the German ZEW survey (Current situation) for February grew from the previous month and happened to be above forecasts: 85.2 against the 83.0, which rendered support to the euro.
European session showed maximums of $1.3552 by EUR/USD pair.
US Dollar: Demand for the save-haven assets dropped, which had a negative influence on the greenback.
British Pound: Sterling demonstrated steady growth against its competitors due to the released strong British fundamentals.
UK Consumer price index turned out to be at the expected level of 4.0%. DCLG House prices were above forecasts too. And the Retail price indices were above expected level as well.
Therefore, the GBP/USD pair reached the $1,6170 maximums. As a result, the speculations regarding possible increase of the principal interest rate reinforced.
Japanese Yen: According to the expectations, the Bank of Japan left the principal rate unchanged at the previous level of 0.10%.
USD/JPY pair managed to grow to the Y83.80 mark.
Gold: Gold prices reached maximums today at the level of $1373.75 per ounce.

American trading session:
American Dollar: Diverse US fundamentals were released during the American trading session. Eventually, the US dollar received support. Empire manufacturing index for February grew and hit 15.43 amid forecasts at 15.00 level. Net long-term TIC flows were above expectations. But advance retail sales dropped for 0.3% when the expectations were 0.5%.


Technical analysis for 16/02

The pair has declined to support level Fibonacci retracement 50.0%. A rise to 1.35984 maybe expected.
Resistance: 1.35984, 1.37486, 1.38554
Support: 1.34882, 1.33143, 1.31674
If the pair has broken 1.61085 and the pair started to work out the Flag. The end of the figure maybe expected at 1.63316. But first 1.62050 should be broken.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair is breaking 0.96574 and aiming to 0.95814.
Resistance: 0.98114, 0.99201, 1.00168
Support: 0.96574, 0.95125, 0.93435
The pair found support at 83.065 and aiming to Moving Average (200) at 84.350.
Resistance: 83.933, 84.866, 86.861
Support: 83.065, 82.219, 81.399
If the pair stays below 1.00067 the pair will decline to 0.99207.
Resistance: 1.00067, 1.00907, 1.01744
Support: 0.99207, 0.98436, 0.97423