Forex-Metal Daily Analysis -17/02/2011

Negative rally of the euro and the pound.

Asian and European trading sessions:
British Pound: The GBP/USD pair set maximums during the Asian trading session at the level of $1,6186. But Wednesday saw the release of the negative UK fundamentals. Nationwide Consumer confidence for January dropped to 47 against expected level of 50. Jobless claims increased for 2.4K when the indicator was forecasted to drop for 3.0K. Pound reacted with a sharp decrease.
According to the publication of the Bank of England Inflation report, the inflation will likely remain high over this year. Following this report the GBP/USD pair dropped to minimums of $1,5985.
Euro: The drop of the pound influenced the euro dynamics. The EUR/USD pair decreased to the $1.3459 mark.
US Dollar: The released Producer price index indicators showed growth and were above their forecasts. Building permits and Housing starts showed growth amid expectations.

American trading session:
US Dollar: The dollar price action was mixed on Wednesday. Buut the US fundamentals, which were released during the American session, changed the trading dynamics of the major currencies. Stro0ng economic docket increased the demand for the risky assets, and the greenback turned out to be under pressure.
The EUR/USD pair managed to rehabilitate and hit the $1,3587 maximums after the release of the Industrial production index, which turned out to be -0.1% against the forecasted 0.5%.
The Federal release of the FOMC meeting, which was also in the market focus today, did not have any relevant influence on the market.

Technical analysis for 17/02

The pair has reached resistance 1.35984 and if this level is broken the pair may rise to Moving Average (500) at 1.36639.
Resistance: 1.35984, 1.37486, 1.38554
Support: 1.34882, 1.33143, 1.31674
The pair is trading below channel line. The pair needs to stay above 1.61349 for being able continue rising to 1.62050.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair is aiming to 0.95814. Next level is 0.95125.
Resistance: 0.96574, 0.98114, 0.99201
Support: 0.95125, 0.93435, 0.91658
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: 1.00907, 1.01744, 1.02705
Support: 0.99207, 0.98436, 0.97423