Forex-Metal Daily Analysis – 02/11/2010

The next FOMC quantitative easing measures are driving the markets. Asian and European trading sessions:
Euro: On Monday the EUR/USD rate showed maximums around the $1.4010 mark, and decreased to $1.3950. 
US Dollar: The released data from China resulted in the high-risk assets growth rate. The Chinese PMI index for October grew and reached the level of 54.7 compared to the 53.8 mark last month. Therefore, the US dollar and the Japanese yen were under pressure.
The greenback was weakening since the new round of quantitative easing was expected from the FOMC next meeting results.
British Pound: The GBP/USD pair reached maximums around the level of $1.6080. The released UK Manufacturing PMI index for October demonstrated unexpected result: 54.9 against the forecasted mark of 53.0, which rendered additional support to the sterling.
Japanese Yen: The yen showed considerable losses against the euro. The market participants are concentrated on the upcoming meeting of the Central bank of Japan. It is expected that the Bank of Japan would state its new measures, aimed to support the national economy.
The USD/JPY pair traded around the range of Y80.30 – Y80.50.
Gold: After the last Friday’s maximum at $1365.7 mark, the gold rate did not show any specific trends. American trading session:
US Dollar: The greenback demonstrated its growth against the euro due to the released US fundamentals. The ISM manufacturing index for October turned out to be much higher than expected: 56.9 against forecasted 54.0.
But the upcoming FOMC policy meeting and prospects for QE2 are capturing the attention of the market.
Australian Dollar: The Australian dollar rate continues its growth against the greenback. The Reserve bank of Australia is expected to refrain from increasing interest rates from its current level of 4.50 %. But Australia would still keep its principal rate advantage over the US and Japan.
Technical analysis for 2/11 EURUSD
The pair is trading below resistance 1.39600. If this level is broken the pair will rise to 1.40690.
Resistance: 1.39600, 1.40690, 1.41780
Support: 1.38554, 1.37486, 1.35984
The pair is trying to stay above resistance 1.60322. This may lead pair to 1.62050.
Resistance: 1.60322, 1.62050, 1.64274
Support: 1.58543, 1.56722, 1.54842
If the pair unable to close above 0.99608, it will bring pair to decline to support level at 0.98750.
Resistance: 0.99608, 1.00466, 1.01595
Support: 0.98750, 0.97892, 0.97130
The pair declined to its lows at 80.438. If the pair closes below this level, the pair will drop to 79.707.
Resistance: 81.162, 82.219, 83.065
Support: 80.438, 79.707, 79.070
The pair returned to its highs at 1.00067. If the pair closes higher, the pair will rise to 1.00907. If the pair closes below 1.00067 the pair will decline to 0.99207.
Resistance: 1.00067, 1.01744, 1.02705
Support: 0.99207, 0.98436, 0.97715