Forex-Metal Daily Analysis -11/07/2012

Technical analysis for 11.07


The pair is working out the Flag figure. The end of the figure maybe expected at 1.21813. 
Resistance: 1.23907, 1.25690, 1.26897 
Support: 1.21813, 1.19332, 1.16790 
The pair has drawn Head and Shoulders and testing Neck level. If the pair declines below 1.54842 the end of the figure maybe expected at 1.53482. 
Resistance: 1.56722, 1.58543, 1.60322 
Support: 1.54842, 1.53482, 1.52063 
The pair has risen to 0.97427 and trying to stay above this level. 
Resistance: 0.98512, 0.99248, 1.00168 
Support: 0.97427, 0.96220, 0.95074 
The pair is working out Head and Shoulders, first aim is at 79.070. 
Resistance: 79.707, 80.438, 81.399 
Support: 79.070, 78.345, 77.539 
MACD shows divergence and the pair may start corrections. First aim is at 1.00907. 
Resistance: 1.02558, 1.03535, 1.04407 
Support: 1.01744, 1.00907, 1.00067


Market review for 10.07.12: The Prime Minister of Italy Mr. Monti Monti: “…it would be unreasonable to say that Italy will never need a help”.


Asian and European trading sessions:

Euro: On the background of the results of yesterday’s meeting which was held in Brussels where the President of the European Central Bank Mr. Mario Draghi said that the ECB may consider further lowering of interest rates for the reason of supporting the Euro zone’s economic growth, the Euro was trading near the low levels against its competitors. Also, the pressure on the Euro had a statement of the Commissioner for Economic and Monetary Affairs of the European Union, Mr.Olli Rehn in which he mentioned the fact that Spain will have to take additional measures to reach its budgetary goals. The EUR / USD pair fell to the level of $1.2282 but then retreated to the yesterday’s highs. The reason for this action was the information that the euro-zone finance ministers agreed on the conditions for providing the financial aid to Spanish banks as given to them one more year to meet their financial goals. Also to Euro’s slight rise was contributed the published result of the Industrial Production report of Italy which showed some growth. The EUR / USD pair rose to $ 1.2338 during the European session, however snapped back with the strong downside pressure which pushed the pair to the new month lows of $1.2245 area.

U.S. Dollar: The dollar strengthened against most major currencies against the backdrop of continued downtrend of Asian and European stock markets.

British Pound: The British pound rose after the published today Industrial Production report which showed an increase in May by 1.0 % m / m thus exceeded the analysts forecasts who expected it fall by 0.2 % m / m. At the same time, the Britain’s trade deficit in May fell sharply as the result of certain change in the exports volume. The GBP / USD couple rose to the highs of $1.5547 area.

Australian and New Zealand dollar: These commodity currencies fell on the Asian session after China confirmed that the growth of exports and imports was weak in June on year to year basis.

American trading session:

Japanese Yen: The demand for the Yen as for safe asset increased on the uncertainty in the situation in Euro zone as well as on falling of the U.S. stock markets.

Euro: The Euro currency remained under pressure and traded near its daily lows on the background of statements of the Prime Minister of Italy Mr. Monti Monti in which he indicated that “…it would be unreasonable to say that Italy will never need help”.

Gold: The price of gold rose to the $1601 area on anticipation of coming this week the Fed Releases Minutes FOMC Meeting as well as on news that the euro-zone finance ministers agreed on the conditions for providing help to Spanish banks as given for them one more year to meet their financial goals. However, the August gold futures by the end of the session declined to $ 1569.6 per ounce.

Oil: The August WTI oil futures fell $ 83.65 per barrel on the information that the strike, which could have threatened to stop production in Norway, the largest exporter of Western Europe, has ended.