Forex-Metal Daily Analysis -12/05/2011

Tension in Greece is escalating, which pressures the euro.

Asian and European trading sessions:
Euro: Problems in Greece reached the point of escalated tension of the public and strikes among the working people. Greeks were against the actions of the Government. Therefore, the euro was under pressure today.
US Dollar: Greenback started to strengthen on Wednesday in anticipation of the strong US fundamental releases planned for tomorrow.
British Pound: Sterling followed the weakened euro first. But pound received support today due to information from the Bank of England that the UK inflation might increase and reach 5%. Possibility for the principal rate increase reinforced. As a result, the GBP/USD showed temporarily maximums of $1.6500 mark.
Japanese Yen: Japanese yen dropped as the demand for the save-heaven assets decreased. Stock markets grew.
Oil: Minor support to the oil prices was received from the concerns over the possible oil supply interruptions due to the Mississippi flood. As a result, the oil rate grew to the level of $103.96 per barrel. Later the oil rate dropped to the $102.04 range.
Gold: Gold price decreased as well and reached the $1,505.20 mark per ounce.

American trading session:
Canadian Dollar: Canadian dollar dropped as a result of the decreased oil priced. At the same time the released Canadian fundamentals were very positive, which rendered support to the national currency.
British Pound: Sterling dropped and reached the $1.6350 minimums at the end of the day.
Euro: The EUR/USD closed the trading day at the minimums of $1.4200.


Technical analysis for 12/05

The pair has declined to support 1.41780.
Resistance: 1.42996, 1.44400, 1.46222
Support: 1.41780, 1.40690, 1.39600
The pair has declined to 1.63316, if this level is broken the pair will decline to 1.62050.
Resistance: 1.64636, 1.65706, 1.67165
Support: 1.63316, 1.62050, 1.60322
The pair has reached 0.88418.
Resistance: 0.88418, 0.89635, 0.91079
Support: 0.87214, 0.85939, 1.84685
If 80.438 is broken the pair will decline to 79.707. If 81.399 is broken the pair will rise to 82.219.
Resistance: 81.399, 82.219, 83.065
Support: 80.438, 79.707, 78.345
The pair has fallen to 1.06164, if this level is broken the pair will fall to 1.05332.
Resistance: 1.07005, 1.07739, 1.08412
Support: 1.06164, 1.05332, 1.04407