Forex-Metal Daily Analysis -12/01/2011

Euro managed to strengthen over the greenback.

Asian and European trading sessions:
Euro: Nevertheless that euro was under pressure due to the concerns over the Euro-zone crises, certain factors rendered support to the euro. The Japanese government announced of its intentions to acquire sovereign Euro-zone bonds. But according to the opinion of some experts, the participation of the Asian countries in the financial support program would not be enough for the settlement of the European crises.
In addition to that, the ECB confirmed its plans to purchase bonds of the European periphery countries according to the Securities Market Program, which supported the euro.
The EUR/USD pair consolidated in the range of $1.2910-$1.2990.
US Dollar: Expectations for the release of the strong US fundamentals supported the US dollar. In particular the retail sales data.
British Pound: The sterling started to consolidate and reached the $1.5590 mark.
Japanese Yen: During the morning trading the USD/JPY pair grew to the Y83,00 level. But during the European session against the general weakening of the greenback the USD/JPY pair decreased to the Y82.90 mark.
Australian Dollar: The flood in Australia raised concerns over the slow-down of the national economy growth rate. As a result, the Australian dollar continued to drop against the greenback and new monthly minimum has been reached at the level of 0.9818.

American trading session:
Euro: Euro showed some consolidation by the end of the trading day and the EUR/USD pair reached the $1.2990 level.
British Pound: The GBP/USD pair managed to grow above the $1.56 level. The speculations over the possibility that the UK principal rate would be increased reinforced.

Technical analysis for 12/01

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, 1.60322
Support: 1.54842, 1.53482, 1.52063
The pair may trade between 0.98114 and 0.96574.
Resistance: 0.98114, 0.99202, 1.00168
Support: 0.96574, 0.95125, 0.93435
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