Forex-Metal Daily Analysis – 31/08/2011

The US dollar is gaining strength again.

Asian and European trading sessions:
Euro: On Tuesday the EUR/USD pair showed its session highs at $1.4532, but couldn’t keep above this level and sharply fell to $1.4383. The euro decreased against the other major currencies as well on the background of reduced expectations of the further interest rates increase by the ECB.
The overall release of the European news was rather negative. Italian Retail sales dropped considerably, the Euro-zone Business climate, economic and industrial confidence indicators decreased below expectations.
US Dollar: Today the U.S. dollar had a very ”good” day. In the view of European news the greenback seems to many investors now as the only alternative for preservation of their assets.
The Frank and the Yen, which also have safe-haven currency status, in the conditions of world instability, now are under pressure, since the governments of these countries continue to hold in control an increase in the national currencies after their significant rise in price.
British Pound: After testing the $1.6418 level, the GBP/USD pair fell to its lows of $1.6277 area. The pressure on the pound was a result of the published Great Britain Consumer confidence survey, which dropped below the previous month’s level and its expectations as well.
Japanese Yen: The USD/JPY pair traded in Y76.65 – Y76.97 range. The yen was under pressure during both sessions, since the stock markets continued to rise amid signs of stability of large Asian economies.

American trading session:
Oil: Oil price increased in spite of the strengthening of the US dollar. It showed the maximum at $89.21 mark and finally closed at $88.89 per barrel.


Technical analysis for 31/08

The pair made an attempt but could not reach 1.46222 and rolling back to support 1.44406. If this level is broken the pair will decline to 1.42996.
Resistance: 1.46222, 1.47342, 1.48550
Support: 1.44400, 1.42996, 1.41780
MACD divergence does not let pair continue rising. The pair has decline to 1.63316 and trying to close below this level it may bring pair to test next support level at 1.62050.
Resistance: 1.64636, 1.65706, 1.67165
Support: 1.63316, 1.62050, 1.60322
The pair has reached Moving Average (100) and rolling back to 0.81356. The pair may break this level easy and decline to 0.80313.
Resistance: 0.82483, 0.83541, 0.84685
Support: 0.81356, 0.80313, 0.79115
The pair has declined to the support level at 76.463. If this level is broken the pair will decline to 75.425.
Resistance: 77.539, 78.345, 79.070
Support: 76.463, 75.425, 74.414
The pair has risen to the resistance 1.07005. The pair needs to break median line at 1.07005 to be able continue rising.
Resistance: 1.07005, 1.07739, 1.08413
Support: 1.06164, 1.05332, 1.04407