Forex-Metal Daily Analysis -12/01/2011

Greenback was supported as unwillingness to take risks grew.

Asian and European trading sessions:
Euro: Concerns regarding the situation of the European peripheral countries and their weakened ability to raise financing continued to pressure the euro in the beginning of this trading week as well.
Today the EUR/USD pair reached its minimum of $1.2871. According to the experts’ opinion, we can see some correction of the euro rate in the nearest future.
Later on the euro was supported by the announcement of the Peoples Bank of China regarding their intention to diversify Chinese monetary reserves in favor of US dollar competitors.
British Pound: Sterling demonstrated temporary decrease after the release of the negative UK fundamentals. The Halifax house prices showed unexpected drop below the forecasts: -1.6% against the expected -1.4%. As a result, the GBP/USD pair dropped to the $1.5472 minimums. But over the European problems, the pound managed to strengthen and reach the $1.56 range.
Japanese Yen: The USD/JPY pair traded in the range of Y82.90-Y83.30.
Australian Dollar: Flood in Queensland, Australia, continued to pressure the Australian dollar rate. Additional negative influence on the national currency was received from the China trade balance figures, which showed a trade surplus of $13.10B against the expected surplus of $20.75B, since China is a major trade partner of Australia.
Oil: Oil traded in the range of $88.97 mark per barrel during the morning trading. Later on, the oil showed growth, as the greenback weakened and the demand for the safe-haven currencies decreased.

American trading session:
Euro: The EUR/USD pair showed growth and reached the $1,29 level
US Dollar: The greenback showed weakening for the first time in 6 days, as demand for the safe-haven assets dropped.

Technical analysis for 11/01

The pair’s support is at 1.28630. The pair’s resistance is at 1.31674. This trading range is expected for a few days. Breakthrough of these levels may signal of changing range.
Resistance: 1.30277, 1.31674, 1.33143
Support: 1.28630, 1.26897, 1.25690
If the pair breaks 1.56722 the pair will rise to 1.58543. If the pair breaks 1.53482 the pair will decline to 1.52063.
Resistance: 1.56722, 1.58543
Support: 1.54842, 1.53482, 1.52063
The pair may return to Moving Average (100) at 0.98156.
Resistance: 0.98114, 0.99202, 1.00168
Support: 0.95125, 0.93435, 0.91658
The pair’s resistance is 83.933. Support is 82.219.
Resistance: 83.933, 84.866, 85.960
Support: 83.065, 82.219, 81.399
The pair has declined to 0.98436. If this level is broken the pair will decline to 0.97423.
Resistance: 0.99207, 1.00067, 1.00907
Support: 0.98436, 0.97424, 0.96464