Forex-Metal Daily Analysis – 16/08/2011

Euro speculations amid upcoming meeting of Sarkozy and Merkel.

Asian and European trading sessions:
Euro: The EUR/USD pair rose from $1.4250 to its highs at $1.4322 area. After comments from the representatives of the government of Germany regarding the upcoming meeting between President Sarkozy and German Chancellor Merkel, to be held on Tuesday, the issue of government bonds purchases would not be included in the agenda, Euro retreated from session highs and traded at the $1.4260 – $1.4330 range.
British Pound: Before updating new lows around $1.6248, GBP/USD traded in the $1.6271 – $1.6312 area. Later on, the pair tried to reach again the $1.6300 level and remained trading slightly higher the $1.6301 area.
Japanese Yen: Japanese yen fell against most currencies amid speculation that central bank of Japan would continue to take actions to reduce the high value of its national currency. USD/JPY fell from the region of Y77.15 to Y76.76 and was trading near the sessions low in the Y76.79 area.
Oil: The September crude oil prices increased by 2.9% to $87.89 per barrel.
Gold: The December gold price added 0.9% and closed at $1757.90 per ounce.

American trading session:
Euro increased significantly against major currencies on speculation that the result of tomorrow’s meeting of French President Nicolas Sarkozy and German Chancellor Angela Merkel would probably reveal the measures to tackle the debt crisis in the EU.


Technical analysis for 16/08

Technical analysis for 16/08
The key level for the pair is 1.40690, if this level is broken the pair will decline to Fibonacci 61.8% at 1.38867. If the pair breaks 1.40690 the pair will rise to 1.46222.
Resistance: 1.44400, 1.46222, 1.47342
Support: 1.42996, 1.41780, 1.40690
The pair could not stay above Fibonacci 38.2% 1.64636. MACD shows sell signal. Key level is 1.62050 after which may be expected decline to 1.60322.
Resistance: 1.64636, 1.65706, 1.67165
Support: 1.63316, 1.62050, 1.60322
The pair is trading around 0.73264.
Resistance: 0.73265, 0.74362, 0.75450
Support: 0.71993, 0.70687, 0.69336
The pair’s support is 0.77849, which can be easy broken and the pair may continue declining.
Resistance: 0.79115, 0.80313, 0.81356
Support: 0.77849, 0.76605, 0.75450
The pair is aiming to Moving Average (100) at 1.05799.
Resistance: 1.05332, 1.06164, 1.07005
Support: 1.04407, 1.03535, 1.02558