Forex-Metal Daily Analysis -19/01/2011

Strong Euro-zone fundamentals supported the euro.

Asian and European trading sessions:
Euro: The released European data happened to be positive on Tuesday. The Euro-zone ZEW survey (economic sentiment) hit the 25.4 high, when the forecast was at the 16.6 level. And after the minimums of $1,3260, the EUR/USD pair grew to $1.3428 maximum.
US Dollar: Greenback was supported by the expectations of the positive US fundamentals‘ release planned for this week.
British Pound: Sterling showed maximums due to the publication of the positive UK data on Tuesday. The UK data turned out to be even stronger, than forecasted. The consumer price index showed the 3.7% against its expected level of 3.4%. The retail price index turned out to be at the forecasted level of 228.4. In addition, the Nationwide consumer confidence grew to 53 against the expected level of 44.
As a result, the GBP/USD pair reached maximums at the level of $1.6050. Expectations for the increase of the principal rate by the Bank of England reinforced.
Japanese Yen: The USD/JPY pair traded in the range of Y82.30 – Y82.60.
Canadian Dollar: According to the expectations, the Bank of Canada left the interest rate unchanged at the level of 1.00%. Canadian dollar dropped against the US dollar.
Oil: Oil prices showed some reduction today and traded around the $90.99 level per barrel.
Gold: “Yellow metal” traded around the $1,374.50 range per ounce.

American trading session:
Euro: The EUR/USD managed to hit a new maximum of $1.3465.
US Dollar: By the end of the day the greenback managed to rehabilitate against its competitors.

Technical analysis for 19/01

The pair needs to break strong resistance at 1.34882 to be able to continue rising.
Resistance: 1.34882, 1.35984, 1.37486
Support: 1.33143, 1.31674, 1.30277
The pair has broken 1.58543 and aiming to 1.60322. Support is at 1.58543.
Resistance: 1.60322, 1.62050, 1.63316
Support: 1.58543, 1.56722, 1.54842
The pair stays below 0.96574. The pair may decline to 0.95125.
Resistance: 0.96574, 0.98114, 0.99202
Support: 0.95125, 0.93435, 0.91658
The pair’s resistance is 83.065. Support is 82.219. If the pair breaks 82.219 the will decline to 81.399.
Resistance: 83.065, 83.933, 84.866
Support: 82.219, 81.399, 80.438
The pair is trying to rise and aiming to 1.00907.
Resistance: 1.00067, 1.00907, 1.01744
Support: 0.99207, 0.98436, 0.97424