Forex-Metal Daily Analysis -26/01/2011

Risk appetite is suppressed.

Asian and European trading sessions:
Euro: On Tuesday the EUR/USD pair traded at the $1,3690 level during the Asian trading session. Minimums were reached at the $1.3578 mark.
British Pound: Today the sterling demonstrated a sharp negative trend and the GBP/USD pair dropped for 200 points and reached the $1.5750 minimums. The release of the UK fundamentals showed that the UK GDP fell by 0.5% in Q4 after having increased for the last 4 quarters. The cold weather conditions could be one of the negative factors that hit the retail and service sectors. As a result, the pound demonstrated a sharpest drop in this month.
According to the experts’ opinion, the possibility that the Bank of England would keep the principal rate unchanged, increased.
Japanese Yen: The greenback decreased against the Japanese yen rate. The USD/JPY traded in the range of Y82.25 – Y82.54.
Bank of Japan decided to leave the principal rate unchanged at the previous level of 0.10%.
Australian Dollar: The released Australian Consumer prices indicators turned out to be unexpectedly lower compared to their forecasts. The annualized Consumer prices index for the fourth quarter resulted in 2.7% when the expectations were at the 3.0%. As a result, the Australian dollar was under pressure.
Oil: Oil rate decreased to the level of $86.50 per barrel.
Gold: Gold prices also dropped to the $1,326 mark per ounce.

American trading session:
US Dollar: Stock markets decrease supported the demand for the save-haven currencies.


Technical analysis for 26/01

The pair has reached Moving Average (500) at 1.36775 which is a resistance level for the pair. The pair needs to close above this level to be able to continue rising to 1.37486. If the pair stays below 1.36775 the pair will decline to 1.35984.
Resistance: 1.37486, 1.38554, 1.39600
Support: 1.35984, 1.34882, 1.33143
The pair was unable to break 1.62050 and declining to 1.56722.
Resistance: 1.585431.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
The pair has declined to 0.95125. If the pair stays below this level the pair may decline to 0.93435.
Resistance: 0.95125, 0.96574, 0.98114
Support: 0.93435, 0.91658, 0.89710
The pair is aiming to 82.219 if stays below this level 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 decline to 0.98436.
Resistance: 1.00067, 1.00907, 1.01744
Support: 0.99207, 0.98436, 0.97424