Forex-Metal Daily Analysis -20/06/2012

The Economic Sentiment in Europe showed a disappointed result.


Asian and European trading sessions:

Euro: The EUR / USD pair rose to $ 1.2613 during the Asian session. Today’s report of Economic Sentiment in a business sphere in Germany derived from conducted by ZEW institute survey recorded a decrease to the level of -16.9 points versus forecasted 2.3points. The Economic Sentiment in a business sphere in Europe as a whole was also disappointed; the value there dropped to -20.1 points compared with -2.4 for the previous month. This very weak data as well as the published results of auctions of government bonds in Spain had a temporary pressure on the EUR/USD couple. The pair dropped to a level of $1.2567 at the beginning of the session where it found a significant support. The result of the Spain auction today revealed that Spain attracted 3.039 billion Euros for 12 and 18 months bonds with target of 3 billion Euros. The average yield, however, increased above 5%, which is considered as a high level.

U.S. Dollar: The U.S. dollar continued to fall on expectations of investors that the currency would fell against most traded currencies this week. The fact of started today the two-day meeting of the FOMC where the new possible measures of quantitative easing would be in focus caused some pressure on the dollar.

British Pound: The GBP / USD pair traded in a narrow range between $ 1.5675 -$ 1.5695 levels during the Asian session. The pound started to lose its position falling against the dollar at the beginning of the next following session after the published statistics recorded a decrease in the Core Consumer Price Index in May to the level of 2.2% (y / y), compared with an expected value of 2.3% and in April’s value of 2.1%. The report on Consumer Price Index of May was also negative; the value fell to the level of 2.8% (y / y) vs. forecasted 3.0%. Al these results thus telling about the reducing of inflation in UK might give the Central Bank of England more options for providing additional measures for stimulating the economy.

Japanese Yen: The Japanese yen rose on background of rising demand for save heaven assets in anticipation of the outcome of the G20 leaders meeting in Mexico. The meeting primarily devoted to discuss on the debt crisis in the euro zone. The USD / JPY pair fell to the level of Y78.83 during the Asian session yet retreated on next following session to the Y79.1 area.

American trading session:

Euro: After a European official said that “three donors” would review the conditions for providing the financial aid for Greece the euro strengthened against the dollar. The EUR/USD pair touched the level of $1.2728.

Gold: The price of gold reached two weeks high, the level of $1.633 per troy ounce, however by the end of the session the July Gold futures today closed this session at 1618.40 dollars per troy ounce today on the COMEX.

Oil: The cost of the July futures contract for WTI crude oil at the NYMEX rose to $ 84.43 a barrel.


Technical analysis for 20/06


The pair is trading between 1.26897 and 1.23907. 
Resistance: 1.26897, 1.28630, 1.30277 
Support: 1.25690, 1.23907, 1.21813 
If the pair stays above 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 stays below 0.95074, it may bring pair to decline to 0.93949. 
Resistance: 0.95074, 0.96220, 0.97427 
Support: 0.93949, 0.93069, 0.92026 
The pair is trading below 79.070, this may bring the pair to 78.345. 
Resistance: 79.707, 80.438, 81.399 
Support: 79.070, 78.345, 77.539 
The pair is aiming to the Moving Average (500) at 1.02903. 
Resistance: 1.02558, 1.03535, 1.04407 
Support: 1.01744, 1.00907, 1.00067