Forex-Metal Daily Analysis -12/04/2011

Correction of the euro.

Asian and European trading sessions:
Euro: This week started with some decrease of the euro rate, since market participants considered that the former rally of the euro was excessive. The EUR/USD traded in the range of $1,4420-$1,4480.
The released announcement of the Minister of Finance of Greece, that the country would need financial support, rendered additional pressure on the euro dynamics on Monday. According to some experts’ opinion, the euro was ready for a correction, and the growth period was over.
US Dollar: Greenback received support on Monday due to the reached agreement concerning the reduction of the US budget expenses for $38 billion.
British Pound: Today sterling tried to test the maximum of $1,6400. During the day the GBP/USD pair reached minimums in the range of $1.6310.
Japanese Yen: The USD/JPY pair dropped to the Y84.5 level. The Japanese yen was growing against the major currencies after the 7.1 magnitude earth-quake, which struck Japan again today.
Oil: Oil is trading around the $111.60 mark per barrel. Growth of the oil prices was a result of the increased concerns over the oil inventories’ supply from the Middle East and North Africa.

American trading session:
British Pound: According to the experts’ opinion, pound might continue testing maximum levels. Today the GBP RICS house price balance for March demonstrated a better result: -23% against the forecasted -24% level and last month’s -26%

Technical analysis for 12/04

The pair has risen to 1.44400 and may to roll back to 1.42996.
Resistance: 1.44400, 1.46222, 1.47342
Support: 1.42996, 1.41780, 1.40690
The pair has risen to 1.63316. The pair couldn’t break this level and may return to 1.62050.
Resistance: 1.63316, 1.64636, 1.67165
Support: 1.62050, 1.60322, 1.58543
If the pair stays below 0.91079 the pair will decline to 0.89635.
Resistance: 0.91079, 0.92026, 0.93069
Support: 0.89635, 0.88418, 0.87214
The pair couldn’t break 84.866 and rolling back to 83.933. If 83.933 is broken the pair will decline to 83.065.
Resistance: 84.866, 85.960, 86.861
Support: 83.933, 83.065, 82.219
The pair is rolling back. Support maybe met at 1.03535.
Resistance: 1.05311, 1.06164, 1.07005
Support: 1.04407, 1.03535, 1.02705