Forex-Metal Daily Analysis -26/06/2012

The market participants expect the negative outcome of the upcoming EU summit, scheduled on June 28-29.


Asian and European trading sessions:

Euro: In anticipation of the scheduled on tomorrow auctions of Italy and Spain government bonds the euro fell against its competitors. Tomorrow, Spain will place the three-and six-month bonds and Italy the securities with maturities in 2016 and 2026 years. The EUR / USD pair dropped to its weekly minimum during the Asian session. The couple continued its downtrend falling below $ 1.2500 level on the fact of the market participants’ negative expectations of the outcome for the upcoming EU summit, scheduled on June 28-29. The market participants lost their confidence and do not trust that the outcome of meeting will be as to take any significant steps that will enable the region to fight the debt crisis in Euro zone and its economic slowdown. The currency came under pressure also on fact that German Chancellor Angela Merkel rejected the issuing of the euro bonds as well as her opposition to provide the finance aid to the Cyprus.

British Pound: The GBP / USD during the first part of the Asian session the pair was trading between $ 1.5575 -$ 1.5592 and closer to the end of the session fell to the $1.5565 area. The pair continued its downtrend a bit on the European trading session to the level of $1.5545 where it was traded till the end of the session.

Japanese Yen: The yen strengthened today on the background of the increased demand for the safe heaven assets due to the instability in the Euro region.. The USD / JPY pair fell to a Friday’s lows during the Asian session and continued to the area of Y79.45 during the European session.

American trading session:

U.S. Dollar: The currency strengthened on the backdrop of falling of the stock markets as well as increased demand for the save heaven assets. The dollar index showed up above the level of 82.80 at the beginning of the session.

Australian, New Zealand, and Canadian dollars: The commodity currencies such dropped today against most major currencies on decreasing demand for raw materials as well as on falling of the crude oil prices.

Gold: The Gold futures on Monday were almost unchanged on the backdrop of expectation of the tomorrow’s summit of EU as well as on a number of important economic data from the U.S. which will be published this week. The June gold futures on the COMEX close at 1584.90 dollars per troy ounce.

Oil: The Oil price tested the level of $ 79.20 per barrel which is a the pivot point of its prices. The concerns of a negative result of the EU meeting based on fears that European Union leaders at a summit this week will not be able to solve the debt crisis in the region, led to the reduction in demand for fuel. The cost of the August futures of WTI on the NYMEX today declined to $ 78.33 a barrel.


Technical analysis for 26.06


The pair is working out the Flag. The end of the figure maybe expected at 1.21813. 
Resistance: 1.25690, 1.26897, 1.28630 
Support: 1.23907, 1.21813, 1.19332 
The pair has broken 1.56722 and aiming to 1.54842. 
Resistance: 1.56722, 1.58543, 1.60322 
Support: 1.54842, 1.53482, 1.52063 
The pair is aiming to 0.96220. If this level is broken the pair will rise to 0.97427. 
Resistance: 0.96220, 0.97427, 0.98512 
Support: 0.95074, 0.93949, 0.93069 
The pair has declined below 79.707 this may bring pair to 79.070. 
Resistance: 79.707, 80.438, 81.399 
Support: 79.070, 78.345, 77.539 
The pair has declined to 1.00067. If the pair breaks this level the pair will decline to 0.99207. 
Resistance: 1.00907, 1.01744, 1.02558 
Support: 1.00067, 0.99207, 0.98436