Forex-Metal Daily Analysis -20/01/2011

The greenback weakness pushed euro higher.

Asian and European trading sessions:
Euro: Today the EUR/USD managed to reach the $1.3537 maximums.
US Dollar: US Dollar demonstrated weakening as market participants were expecting negative US fundamentals.
According to the forecasts, the US housing starts dropped in December to 529K against the expected 550K, which was a sign of the economical growth rate slow down. Employment data is forecasted to be negative as well.
In addition, the greenback was pressured by the Chinese Yuan.
British Pound: The sterling continued to trade around the reached maximums against the greenback on Wednesday morning. Weakening of the US dollar supported the pound. In addition, the UK jobless claims dropped to 4.1K in December (this decline in jobless claims marked the lowest level in 21 months), the Claimant count rate turned out to be at the forecasted level of 4.5%.
The GBP/USD pair grew and hit daily maximums at the $1.6036 mark. Nevertheless, the sterling was lower against other major currencies.
Japanese Yen: The USD/JPY rate showed minimums at the level of Y81.82.
Oil: Oil rate grew to the $92.93 mark per barrel.
Gold: Gold traded in the range of $1,367.80 level per ounce.

American trading session:
Euro: In spite of the reached maximums, the euro weakened at the end of the trading day.
British Pound: The sterling decreased by the end of the day as well, and the GBP/USD pair dropped a little below the $1.60 level.


Technical analysis for 20/01

The pair needs to break strong resistance at 1.34882 to be able to continue rising. The pair may roll back to support at 1.33143.
Resistance: 1.34882, 1.35984, 1.37486
Support: 1.33143, 1.31674, 1.30277
The pair has reached 1.60322 and rolling back to 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 is trying to stay below 82.219, the pair may decline to 81.399.
Resistance: 83.065, 83.933, 84.866
Support: 82.219, 81.399, 80.438
The pair is aiming to 0.99207, if this level is broken the pair will continue declining.
Resistance: 1.00067, 1.00907, 1.01744
Support: 0.99207, 0.98436, 0.97424