Forex-Metal Daily Analysis -20/11/2012

Technical analysis for 20.11


The pair is returning to 1.28630. 
Resistance: 1.28630, 1.30277, 1.31674 
Support: 1.26897, 1.25690, 1.23907 
The pair is trying to rise to the Moving Average (200) at 1.59462. 
Resistance: 1.60322, 1.62050, 1.63316 
Support: 1.58543, 1.56722, 1.54842 
The pair has risen to the resistance 0.95074 and rolling back to 0.93949. 
Resistance: 0.95074, 0.96220, 0.97427 
Support: 0.93949, 0.93069, 0.92026 
The pair has risen to the Resistance 81.399. If the pair breaks this level the pair will rise to 82.219. 
Resistance: 81.399, 82.219, 83.065 
Support: 80.438, 79.707, 79.070 
The pair is rising to 1.04407. If this level is broken the pair will rise to 1.05332. 
Resistance: 1.04407, 1.05332, 1.06164 
Support: 1.03535, 1.02558, 1.01744


Market review for 19.11.12: The Euro strengthened amid decision on providing of the next tranche of financial aid to Greece.


Asian and European trading sessions:

Euro: The euro was supported and the EUR / USD pair rose to $ 1.2787 during the European session on the prospects of an agreement on providing further aid to Greece between the finance ministers of the eurozone and the International Monetary Fund. The meeting of the Eurogroup’s finance ministers will start on this Tuesday.

U.S. Dollar: The dollar fell against the euro on speculations that U.S. lawmakers will come to agreement on the budget of the country and solution on preventing the so-called “fiscal cliff “. All these speculations led to a damping demand for safe assets. In details, the President of USA Mr. Obama said he was “sure” that the agreement on spending cuts and tax increases will be reached at the end of the year. The dollar index fell to 82.01 at the European session.

Japanese Yen: The trading dynamics of the Japanese Yen against its competitors during the Asian session had been influenced by the speculations of the result of tomorrow’s meeting of the Bank of Japan, which will be held for two days. The market expected the Central Bank announce more aggressive monetary policy easing due to the pressure of the opposition party. The USD / JPY pair showed a new maximum of Y81.58, but later declined. It declined in anticipation of response of the Bank of Japan on comments of the former prime-minister Mr. Abe and his calls for more aggressive mitigation of the existed monetary policy. The USD / JPY pair during the European session dropped to Y81.08.

Australian and New Zealand dollar: 
The Australian and New Zealand dollar rose against the background of raising the Asian and European stock markets on boosted today demand for higher-yielding assets.

American trading session:

Euro: The decision was taken today at a meeting of Eurozone finance which was held in Paris was the providing of the next tranche of financial aid to Greece on December 5. The ministers will meet tomorrow in Brussels where they will give a preliminary approval for the allocation of 44 billion euros ($ 56 billion).

Canadian and Australian dollars: These currencies grew against the U.S. dollar as the International Monetary Fund said that it is considering including the Australian and Canadian dollar in the official report on foreign currency reserves.

U.S. Dollar: The dollar index fell by 0.55% to 80.81 during this session. The dollar’s decline was due to the published today report, which showed that U.S. Existing Home Sales rose in October, indicating that the success of the real estate market is currently supported by cheap borrowing costs.

Gold: Gold prices rose today to 1735.40 dollars per ounce, offsetting losses of the last week. The prices were supported by increased risk appetite and weak dollar.

Oil: The Oil prices rose to their highest level in nearly two weeks on fears that the tense situation in the Middle East could disrupt supplies of the Oil. The January futures price of U.S. light crude oil WTI rose to 89.75 dollars a barrel on the NYMEX.