Forex-Metal Daily Analysis -22/05/2012

The “G8” leaders agreed to continue taking measures to strengthen the world economy.


Asian and European trading sessions:

Euro: The Euro currency was able to bounce this Monday after sell-off of the previous week. However the demand for euro was limited due to the expectations of new negative signals from the Euro region. The EUR / USD pair rose above the $ 1.2810 yet fell to the $1.2726 area at the European session. The result of the auction for German debt securities caused some demand for the Euro currency. Today, Germany attracted 2.91 billion Euros for 12 months with the yield that reached a new record low – 0.0264 % compared with 0.0743 % previously and coverage of 2.1 versus 2.3 previously. On the background the EUR / USD couple pulled back to the region of $ 1.2752 with the intention to reach the highs of Asian session..

U.S. Dollar: The demand for dollar was still high. The currency also got some intraday support despite a decline in Asian stock markets and was able to compensate some of its losses incurred in the morning against the European currencies.

British Pound: The GBP / USD pair rose to the Friday’s highs but was not able to go higher than this area. The GBP / USD couple during both sessions remained in the range of $ 1.5775 – $ 1.5836.

Japanese Yen: On the backdrop of market’s expectations that the Bank of Japan this week would announce the new stimulus measures to support economic growth and weaken the yen, the Japanese currency fell against all major currencies.. The USD / JPY pair slightly increased during the Asian session and continued to trade strongly during the European session reaching the high of the day at the $79.44 area.

American trading session:

Japanese Yen: The yen fell against most major currencies amid rumors that the Bank of Japan this week may even increase the amount of measures to support economic growth and weakening the national currency. Recall that on its previous meetings in February and April the Central Bank of Japan expanded the program of asset purchases.

Euro: The Euro strengthened against the dollar after German Finance Minister Mr. Wolfgang Schaeuble said Germany and France will do “everything necessary “to save Greece in the area of the single currency. The EUR / USD couple recorded the high of the day at the region of $1.2822

Gold: The Gold price increased on Monday on the background of the result of the summit of the leaders of the “G8” in Camp David. The “G8” leaders agreed to continue taking measures to strengthen the world economy. June’s gold rose to the highs of $ 1599.0 per troy ounce on the COMEX today.

Oil: The Oil futures jumped by more than 1% after Chinese Premier Mr. Wen Jiabao said his country would pay more attention for strengthening economic growth. The cost of June WTI futures on the NYMEX today rose to $ 93.31 a barrel.


Technical analysis for 22/05


The pair has worked out Triple Top and declined to 1.26897. 
Resistance: 1.28630, 1.30277, 1.31674 
Support: 1.26897, 1.25690, 1.23907 
The pair has broken 1.60322 and aiming to 1.58543. 
Resistance: 1.60322, 1.62050, 1.63316 
Support: 1.58543, 1.56722, 1.54842 
The pair is aiming to 0.95074. 
Resistance: 0.95074, 0.96220, 0.97427 
Support: 0.93949, 0.93069, 0.92026 
The pair is trading between two Moving Averages (100 and 200). If the pair breaks 79.707 the pair will decline to 79.070. If the pair breaks 80.438 the pair will rise to 81.399. 
Resistance: 80.438, 81.399, 82.219 
Support: 79.707, 79.070, 77.539 
The pair has declined to 0.99207 and may roll back to 1.00067. 
Resistance: 1.00067, 1.00907, 1.01744 
Support: 0.99207, 0.98436, 0.97423