Forex-Metal Daily Analysis -30/05/2012

The Greek banks received a total of 18 billion Euros as the second program of assistance to Greece from the EU and the IMF.


Euro: During the Asian trading session the EUR / USD pair fell to $ 1.2508 on the eve of tomorrow’s auction for Italian debt securities as well as expectations of the macroeconomic reports, the results of which might confirm a negative impact of the financial crisis on the EU economy. However, on early European session, the previous downtrend had changed its direction amid information that the four Greek banks received a total of 18 billion Euros as the second program of assistance to Greece from the EU and the IMF. The funds were received in the form of bonds of the European Financial Stability Fund. On the background of this positive news the Euro currency grew against the major traded currencies and the EUR / USD pair showed its daily high at $ 1.2574 area.

U.S. Dollar: The rumors that the Xinhua government intends to launch a new program for stimulating economic growth have been officially denied by the news agency of the People’s Republic of China (PRC). 
Against this background the market participants’ sentiment shifted towards the safe heaven assets, therefore the demand for the U.S. dollar has been increased. The currency strengthened against major traded currencies.

British Pound: The GBP / USD pair fell to $ 1.5655 during the Asian session. The report provided by the Confederation of British Industry which recorded a positive balance showing that the Reported Sales grew in May to 21% did not support for the Pound trading dynamics. The Confederation of British Industry also stated that Retail Sales are still below average this year and will remain under pressure due to the weakness in other sectors of the UK economy. The GBP / USD couple tried to recover and showed up above $ 1.5710 area but snapback from this level and returned to the area of session’s lows.

American trading session:

Euro: The Euro currency fell below $ 1.25 to the area of &1.2470 after the agency Egan-Jones lowered the credit rating of Spain from BB- to B. The agency also commented that, “Spain will inevitably face the need to provide financial support to the national banking sector and the weak provinces.

Japanese Yen: The yen rose against of the most traded currencies against the backdrop of increased demand for safe-haven assets.

Gold: The Gold is rose against the backdrop of possible tense reduction in the Greece situation as well as on a moderately strong statistics on inflation in Germany recorded that the CPI almost hit the forecasted levels in May. The cost of the June gold futures rose to a high of $ 1583.25 per troy ounce on the COMEX today, however, got hammered along with the change negatively the Euro currency trading dynamics.

Oil: The cost of the July WTI oil futures fell to $ 90.25 per barrel on the NYMEX today. The Oil prices dropped on the background of continuing decline in consumer confidence for the U.S. economy as well as on worsening the situation with the debt crisis in the euro zone. These factors affect now the consumption of oil now.


Technical analysis for 30/05


The pair has broken 1.25690. The pair is aiming to 1.23907. 
Resistance: 1.25690, 1.26897, 1.28630 
Support: 1.23907, 1.21813, 1.19332 
The pair has broken 1.56722. The next aim is at 1.54842. 
Resistance: 1.56722, 1.58543, 1.60322 
Support: 1.54842, 1.53482, 1.52063 
The pair is trading around trend channel 0.96220. If the pair stays below this level the pair will declined to 0.95074. 
Resistance: 0.96220, 0.97427, 0.98512 
Support: 0.95074, 0.93949, 0.93069 
The pair is trading below Moving Average (200) at 79.707 it may bring pair to decline to 79.070. 
Resistance: 79.707, 80.438, 81.399 
Support: 79.070, 78.345, 77.539 
The pair’s support is at 0.97423, resistance 0.98436. 
Resistance: 0.98436, 0.99207, 1.00067 
Support: 0.97423, 0.96579, 0.95611