Forex-Metal Daily Analysis -05/07/2012

Technical analysis for 5.07


The pair will work out the Flag figure if stays below 1.25690. 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 is trading near resistance 1.56722, if the pair declines below this level the pair will decline to 1.54842. 
Resistance: 1.56722, 1.58543, 1.60322 
Support: 1.54842, 1.53482, 1.52063 
The pair’s resistance 0.96220, support 0.95074. 
Resistance: 0.96220, 0.97427, 0.98512 
Support: 0.95074, 0.93949, 0.93069 
The pair has reached Moving Average (100) 79.707 and if the pair stays above this level the pair will rise to 80.438. 
Resistance: 79.707, 80.438, 81.399 
Support: 79.070, 78.345, 77.539 
The pair has reached Moving Average (500) 1.02967. 
Resistance: 1.03535, 1.04407, 1.05332 
Support: 1.02558, 1.01744, 1.00907


Market review for 04.07.12: The pound fell on disappointing PMI results. Americans celebrated the Independence Day today.


Asian and European trading sessions:

Euro: The euro traded mostly flat against the dollar and yen at the Asian session after the yesterday’s growth, in anticipation of tomorrow’s auction of Spanish bonds and publication of the statistical data for Euro region. Also the European Central Bank’s meeting which scheduled for July 5 was in market participants’ focus today. The expectations were about the lowering of the benchmark interest rate by 0.25 % – to a record low of 0.75% per annum by ECB on the coming meeting. The EUR / USD pair fell to $1.2508 mark during the last part of the European session after the publication of economic data for the EU, which showed weak growth of Euro zone’s economy.

U.S. Dollar: The dollar traded higher against its competitors in anticipation of tomorrow’s publication of a report on employment in the United States. The analysts’ forecasts are predicting the increase in the number of jobs by 90K in June. Also the currency got support by the statements of the representative of the ECB Mr. Claes Knothe, who discussed the program of bonds purchases.

British Pound: The pound fell sharply after disappointing data on the Purchasing Managers’ Index (PMI) for services in June sector, which fell to 51.3 from 53.3 in May, reaching its lowest level since October last year. The GBP / USD pair sharply dropped to $1.5603 level at the end of European session.

Swiss franc: The Swiss franc during the session also showed a significant reduction against the backdrop of published today weak results of the reports for the EU region.

American trading session:

The U.S. financial markets were closed today in connection with celebrating of the Independence Day, a National Holiday in United States of America.

British Pound: The pair GBP / USD pair updated daily low falling to $ 1.5575 area. In addition to the weak British PMI report, which disappointed the pound and provided the negative impact on the currency, was an information of a running scandal around the definition of policy rates Libor.

Australian dollar: The Australian dollar tried to grow today after the Australian Bureau of Statistics reported that retail sales in Australia in May increased by 0.5% to $ 21.307 billion.

Gold: The August gold futures traded flat today mostly around the 1615.7 dollars per troy ounce area.

Oil: The Oil prices declined to $ 86.47 a barrel on the NYMEX today due to the fact of taking profits on long positions after a sharp rise at the previous day. Trading volume was low today in connection with the celebration of Independence Day in the USA.