Forex-Metal Daily Analysis – 16/11/2010

The greenback reaches maximums against the euro and the yen.

Asian and European trading sessions:
Euro: The concerns over the possibility that Ireland would ask the European community for immediate financial help, continued to pressure the euro on Monday.
The EUR/USD pair decreased to the level of $1,3650 during the morning session. Minimum was set at the level of $1,3600.

US Dollar: Forecasts for the strong US fundamentals rendered support to the greenback, which strengthened against all its counterparts.
British Pound: The sterling was also under pressure, and the GBP/USD rate dropped to the $1,6045 mark. The released UK fundamentals had a negative influence on the sterling: the Rightmove House prices showed an unexpected decrease.
Japanese Yen: On Sunday and Monday strong economic data was published in Japan. The Gross Domestic Product for the 3-d quarter rose for 0.9%, against for the expected rise for 0.6%. The annualized GDP increased for 3.9% against the forecasted 2.5%. At the same time the Industrial production in Japan for September annualized increased for 11.5% compared to the 11.1% last month. These signs of the Japanese economy rehabilitation decreased the demand for the save-haven currencies, and the Japanese yen rate dropped.
The USD/JPY pair traded around the level of Y83.00.
Oil: The oil rates decreased and were set below the $85,00 price per barrel.

American trading session:
Euro: This Tuesday the European countries’ Financial Ministers will meet and discuss the financial support package for the banks in Ireland and the necessity of this aid.
During the Seoul Summit the G-20 leaders came to a conclusion to avoid the race to currency depreciation. But they were far from determining the overall economic policy.
US Dollar: According to the published information, the Advance retail sales for October turned out to be at the level of 1.2% against the forecasted 0.7%. At the same time the Empire Manufacturing index for November dropped to -11.14 against the expected level of 14.0. Following these reports the US dollar weakened against its competitors.


Technical analysis for 16/11

The pair has broken support Moving Average (500) at 1.37486 and declined to 1.35984. Lower is support of Fibonacci and Moving Average (100) at 1.34882.
Resistance: 1.37486, 1.38554, 1.39600
Support: 1.35984, 1.34882, 1.33143
The pair’s resistance trend line is at 1.62850. Support is at 1.60322. If pair breaks resistance the pair will rise to 1.63316. If the pair breaks support the pair will decline to 1.58543.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair has risen to 0.98750 and rolling back. Support maybe met at 0.97892.
Resistance: 0.98750, 0.99608, 1.00466
Support: 0.97892, 0.97130, 0.96480
The pair has reached resistance at 83.065. If the pair breaks this level, the pair will rise to 83.933.
Resistance: 82.219, 83.065, 84.866
Support: 82.219, 81.399, 80.438
The pair has dropped to support 0.98436.
Resistance: 0.99207, 1.00067, 1.00907
Support: 0.98436, 0.97715, 0.96464