Forex-Metal Daily Analysis – 19/10/2011

Speculations regarding possible credit rating reduction of France pressure the euro.

Asian and European trading sessions:
Euro: Concerns over the EC sovereign debt pressured the euro yesterday, and today the euro managed to grow against the US dollar and the Japanese yen.
At the same time, speculations regarding possible credit rating reduction of France pressured the euro on Tuesday. As a result, the EUR/USD pair showed minimums in the range of $1,3657.
US Dollar: The decrease of the main stock indices supported the greenback and the yen, as save-heaven currencies.

British Pound: The GBP/USD pair traded in the narrow range of 1.5730 – 1.5787 during the Asian trading session, and set its daily high during the European session at 1.5820.
Japanese Yen: Both sessions showed the same trading range of Y76.65 – Y76.85.
Gold: The gold closed at the $1657 mark per ounce.

American trading session:
Euro: Euro managed to rehabilitate after the announcement of the German Chancellor, Angela Merkel, stated that the European leaders’ Summit planned for October 23-d, could offer the support plan for the European union.
As demand for the high-risk assets increased, the Australian, New-Zealand and Canadian dollars grew.

Technical analysis for 19/10

The pair has tested Fibonacci level 61% at 1.38871 and rolled back to 1.37486. The pair may continue declining to 1.35984.
Resistance: 1.38554, 1.39600, 1.40690
Support: 1.37486, 1.35984, 1.34882
The pair has worked out Double Bottom. If the pair stays above support 1.56722 the pair will rise to 1.58543.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
The pair has declined to 0.89635. If this level is broken the pair will decline to 0.88418.
Resistance: 0.91079, 0.92026, 0.93069
Support: 0.89635, 0.88418, 0.87214
If the pair stays below 76.463 the pair will decline to 75.425. If the pair stays above 76.463 the pair will rise to 77.539.
Resistance: 77.539, 78.345, 79.070
Support: 76.463, 75.425, 74.414
The pair has tested Moving Average (100) at 1.02879.
Resistance: 1.02558, 1.03535, 1.04407
Support: 1.01744, 1.00907, 1.00067