Forex-Metal Daily Analysis – 25/11/2010

The EUR/USD dropped to new lows.

Asian and European trading sessions:

Euro: The euro hit new minimums on Wednesday, as the rating agency “Standard and Poor’s” reduced the sovereign ratings of Ireland both long-term and short-term. The speech of German Chancellor, Angela Merkel, pressured the euro as well, since she called for a permanent bailout solution for Ireland.

The EUR/USD pair reached the lows of $1.3279.

The released European fundamentals managed to increase the demand for the high-risk currencies temporarily and supported the euro. The German IFO – Business climate, Current assessment and Expectations indices for November showed growth and turned out to be above forecasts. In fact, the German business sentiment actually hit a record high in November.

At the same time concerns over the rehabilitation of the domestic Euro-zone economy reinforced, as the Euro-zone Industrial new orders figures were release, which showed considerable drop below the expectations.

US Dollar: On Wednesday the US dollar showed some strengthening against its major counterparts.

British Pound: The sterling followed the euro dynamics. The released UK fundamentals supported the expectations. The GDP for the third quarter turned out to be at the predicted level of 0.8%.

Japanese Yen: The decrease of the Japanese yen rate was a result of the conflict between the DPRK and the Republic of Korea.

Australian Dollar: The Australian dollar rallied against most of the low-risk currencies on Wednesday.

American trading session:

US Dollar: The released US fundamentals were diverse. The initial jobless claims decreased to 407K against the expected decrease to 435K. At the same time the new home sales for October dropped for 8.1% against the expected rise for 1.6%.

Euro: Speculations regarding the possibility that Portugal and Spain would request financial aid in the coming months reinforced.


Technical analysis for 25/11

The pair has reached support 1.33143.
Resistance: 1.34882, 1.35984, 1.37486
Support: 1.33143, 1.31674, 1.30277
The pair has reached Moving Averages (500 and 100). If the pair breaks 1.57556 the pair will decline to 1.56722.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
The pair is under pressure of Moving Average (100) 1.00065.
Resistance: 1.00466, 1.01595, 1.02747
Support: 0.99608, 0.98750, 0.97892
The pair is under pressure of Moving Average (100) 83.933. Once the support is broken 83.065 the pair will decline to 82.633.
Resistance: 83.933, 84.866, 85.960
Support: 83.065, 82.219, 82.219
The pair may decline to Moving Average (100) at 0.95761 if the pair breaks 0.97424.
Resistance: 0.98436, 0.99207, 1.00067
Support: 0.97424, 0.96464, 0.95154