Forex-Metal Daily Analysis – 14/12/2011

The markets were focused on the FOMC meeting today.

Asian and European trading sessions:
Euro: During the Asian trading session the EUR/USD pair traded in range of $1.3160 to $1.3210. Credit rating agencies continued criticize the results of the yesterday’s European summit and reinforced worries that the agreement would not be sufficient to contain the EU debt crisis .The report of the German institute ZEW, which recorded a growth of business confidence of the largest euro zone economy and the EU as a whole in the first over the past 10 months, positively supported the dynamics of trading of the Euro currency and EUR/USD showed its daily high at $1.3235 level.
US Dollar: The US dollar rose to a two-month high against the euro amid anticipations of auction for the EFSF. The market participants expected negative sales in connection of the possible reduction by Standard & Poor’s agency the highest rating of the leading EU countries.
British Pound: During both sessions the pound rose to its daily highs around $1.5620 area after the Royal Institute today announced that the of RICSS’s house price balance index in Britain rose in November to – 17 % amid rising demand versus – 24% in October and forecasted -25% .
Japanese Yen: The USD/JPY pair traded in narrow range of Y77.70 to 77.95 during both sessions.
The market were focused on Federal Reserve’s meeting, the result of which would have been revealed during the American trading session.

American trading session:
Euro: The Euro currency had suffered another nasty spill, caused by a new wave of negative media reports were that the German Chancellor Angela Merkel confirmed that she is opposed to increasing the maximum size of the European Stability Mechanism (ESM). The EUR / USD couple fell to $ 1.3020.

US Dollar: The FOMC decision , which matched the predictions of market participants put pressure on the U.S. stock markets and in contrast supported the US dollar which rose against its competitors.

Oil: The WTI futures grew by +2,25% today and closed at $100.30 level
Gold: By the end of Tuesday the gold futures quoted at $ 16626.50 per ounce (-0.31 %), confirmed its daily lows at $1.622 area. The pressure on the gold still have the banks’ sales, which are thus trying to improve the liquidity amid growing tension on the financing of the banking sector.

Technical analysis for 14/12

The pair has declined to support 1.30277.
Resistance: 1.31674, 1.33143, 1.34882
Support: 1.30277, 1.28630, 1.26897
The pair has declined to 1.54842. If this level is broken the pair will decline to 1.53482.
Resistance: 1.56722, 1.58543, 1.60322
Support: 1.54842, 1.53482, 1.52063
The pair is aiming to 0.95074.
Resistance: 0.95074, 0.96220, 0.97427
Support: 0.93949, 0.93069, 0.92026
The pair has found support at 77.539 and aiming to 78.345.
Resistance: 78.345, 79.070, 79.707
Support: 77.539, 76.463, 75.425
The pair may decline to Fibonacci 23% at 0.98771 if stays below 1.00907.
Resistance: 1.00907, 1.01744, 1.02558
Support: 1.00067, 0.99207, 0.98436

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