Forex-Metal Daily Analysis -08/08/2012

Technical analysis for 8.08


The pair’s resistance 1.23907, support is 1.21813. The pair may rise to the Moving Average (100) at 1.25690. 
Resistance: 1.23907, 1.25690, 1.26897 
Support: 1.21813, 1.19332, 1.16742 
The pair’s resistance is 1.56722. Support is 1.54842. 
Resistance: 1.56722, 1.58543, 1.60322 
Support: 1.54842, 1.53482, 1.52063 
The pair is working out Head and Shoulders figure. The end of the figure maybe expected at 0.95670. MACD divergence supports pair’s downward corrections. 
Resistance: 0.97427, 0.98512, 0.99248 
Support: 0.96220, 0.95047, 0.93949 
If the pair stays below 78.345 the pair will decline to 77.439. 
Resistance: 78.345, 79.070, 79.707 
Support: 77.539, 76.463, 75.425 
The pair is aiming to 1.06164. 
Resistance: 1.06164, 1.07005, 1.07739 
Support: 1.05332, 1.04407, 1.03535


Market review for 07.08.12: The greenback declined on tendency of market participants to take risks.


Asian and European trading sessions:

Euro: The EUR / USD pair tried to keep the level of $1.24 during the Asian session. The Euro grew on the following session due to the published information that the German’s government approved on Monday a proposal of the ECB President Mr.Mario Draghi regarding the purchases of Spain and Italy bonds in order to reduce their level of profitability. All details of the plan will be announced by ECB president by the end of August. Moreover, another push up that the single currency got today occurred after the result of report for Italian GDP in 2d Quarter of 2012 year in yearly term showed that the economy of Italy fell less than it was expected by economists. The Italian gross domestic product fell by 0.7% versus forecasted -0.8%. In annual terms, GDP fell by 2.5% which matched the expectations. The Euro continued to rise ignoring the negative results of Germany’s factory orders report; the orders fell by 1.7% in June, after rising 0.7% in May while economists had forecast that the decline will be only at 0.8%.

Japanese Yen: On expectations that the BOJ will not undertake any significant changes in the monetary policy at the meeting on August 8-9, the Yen continued to be kept at high levels against most world currencies. Many analysts predict that the Bank of Japan will leave unchanged its benchmark interest rate and the amount of incentive programs at the same level in August. The USD / JPY pair traded in a range of Y78.17-Y78.28 during the Asian session and grew to the Y78.59 area amid strengthening of the stock markets around the world during the European session.

Australian dollar: The RBA left its key interest rate unchanged at 3.5% as it was expected by the markets. The published news provided support for the National currency and the Australian dollar rose to a four- month high against the American dollar.

Swiss franc: The Swiss franc rose against the dollar after the central bank of Switzerland said that the reserves of foreign currencies rose to record levels in July.

American trading session:

U.S. Dollar: The dollar traded at its lows against most of its competitors on the background of positive dynamics of stock indices, which continued to support the tendency of market participants to take risks. 
Again, all this positive sentiment was coming on hopes of market participants about the ECB steps in taking appropriate measures that will cope with the current debt crisis.

Canadian Dollar: The Canadian dollar reached a three-month high against the American dollar. The support the currency received by the published today positive results on the index of business activity and the number of building permits, which were better than expected.

Gold: The Gold prices recorded today the high the day at $ 1618 per troy ounce level against a background of raising the euro against the dollar as well as growing of the stock markets. The cost of the August gold futures on the COMEX today closed at 1611.7 dollars per troy ounce.

Oil: The published today U.S. oil companies’ earning reports showed that the corporates earnings have increased more than expected. This positive news supported the Oil prices today and the cost of WTI’s September futures rose to a high of $ 94.34 per barrel on the NYMEX.