Forex-Metal Daily Analysis -05/04/2011

Uncertainty in the FRS interest rate decision expectations.

Asian and European trading session:
Euro: The beginning of this week saw the strong euro growth against the US dollar. Reinforced expectations for the increase of the interest rate by the ECB rendered a strong support for the euro. The next ECB meeting is planned for April 7-th.
The EUR/USD pair demonstrated its maximum at the level of $1.4269 during the morning trading.
US Dollar: The uncertainty expressed by the FRS members regarding the interest rate increase pressured the greenback.
British Pound: Sterling showed considerable growth today, since the released PMI construction data demonstrated growth to 56.4 above the forecasted 54.8.
As a result, the GBP/USD reached the maximums of $1.6176.
Japanese Yen: Japanese yen dropped following the decrease in the demand for the save-heaven assets. Investors’ optimism is growing in anticipation of the strong fundamentals this week. Stock markets showed growth today as well.
The USD/JPY pair traded in the range of Y84,00-Y84,40.
Oil: Oil prices increased and reached the $108.24 level per barrel.
Gold: “Yellow metal” grew as well and reached the $1,438 mark per ounce.

American trading session:
Euro: The EUR/USD could not keep the reached maximums and decreased to $1.4220 level.
British Pound: Pound decreased as well by the end of the day and the GBP/USD dropped to $1.6130 level.


Technical analysis for 05/04

The pair is under resistance of median line. This is a strong level and the pair may takes time to break it. Also roll backs can be expected.
Resistance: 1.42996, 1.44400, 1.46222
Support: 1.41780, 1.40690, 1.39600
The pair is aiming to 1.62050.
Resistance: 1.62050, 1.64636, 1.67165
Support: 1.60322, 1.58543, 1.56722
The pair is declining and aiming to 0.91079.
Resistance: 0.92026, 0.93069, 0.93949
Support: 0.91079, 0.89635, 0.88417
The pair has reached Moving Average (200) at 83.573.
Resistance: 84.866, 85.960, 86.861
Support: 83.933, 83.065, 82.219
The pair is rolling back to 1.02705.
Resistance: 1.03535, 1.04407, 1.05311
Support: 1.02705, 1.01744, 1.00907