Forex-Metal Daily Analysis -10/05/2011

S&P reduced credit rating of Greece.

Asian and European trading sessions:
Euro: Speculations regarding possible withdrawal of Greece from the Euro-zone were not confirmed, since during the meeting of the Ministers of Finances of the Euro-zone countries this question was not discussed. As a result, the EUR/USD pair tried to strengthen above the $1.4400 level during the Asian trading session.
But later the announcement that the S&P credit agency reduced the credit rating of Greece to B level and noted that new reductions were possible, pressured the euro. Therefore, the EUR/USD dropped to $1.4250.
At the same time the unexpected increase of the German exports for March rendered support to the euro.
British Pound: Sterling tried to strengthen as well and traded in the range of $1.6330-$1.6410 on Monday. But the released UK data pressured the pound. The Halifax house prices showed an unexpected drop for 3.7%, while the decrease was forecasted for 3.0%. In addition, the forecast of the UK GDP was decreased.
The GBP/USD pair dropped to $1.6350 minimums.
Japanese Yen: The USD/JPY pair traded in the range of Y80.50-Y80.95.
Australian Dollar: Australian dollar demonstrated growth on Monday in anticipation of the forecasted Chinese trade balance with increased imports, which is planned to be released on Tuesday.
Oil: The beginning of this week saw the growth of the oil prices. The oil prices grew and reached the $102.74 mark per barrel.

American trading session:
US Dollar: During the American trading session the greenback demonstrated weakening due to the increased oil prices. As a result, the EUR/USD rehabilitated and reached the $1.4350 level and the GBP/USD grew to the $1.6400 mark.

Technical analysis for 10/05

The pair has declined to support 1.42996, if this level is broken the pair will decline to 1.41780.
Resistance: 1.44400, 1.46222, 1.47342
Support: 1.42996, 1.41780, 1.40690
The pair has declined to 1.63316 and aiming to test 1.64636.
Resistance: 1.64636, 1.65706, 1.67165
Support: 1.63316, 1.62050, 1.60322
The pair is trying to stay above 0.87214, it may bring pair to test 0.88418.
Resistance: 0.88418, 0.89635, 0.91079
Support: 0.87214, 0.85939, 1.84685
The pair has reached 80.43. If this level is broken the pair will decline to 79.707.
Resistance: 81.399, 82.219, 83.065
Support: 80.438, 79.707, 78.345
The pair has reached 1.07739, if this level is broken the pair will decline to 1.07005.
Resistance: 1.07739, 1.08412, 1.09112
Support: 1.07005, 1.06164, 1.05332