Forex-Metal Daily Analysis -24/05/2011

Greenback is strengthening against all competitors.

Asian and European trading sessions:
Euro: Concerns over the possible reduction of the credit rating of Italy by Standard & Poor’s credit agency, pressured the euro on Monday. Reduction of the credit rating of Greece on last Friday continued to have a negative influence on the euro as well. European budget crises pushed investors’ optimism lower.
During the elections to local authorities, that just took place in Spain, the opposition People’s Party received most of the votes, which rendered additional pressure on the euro.
Released today European PMI indices turned out to be below forecasts and lower previous month’s levels. For example, the Euro-zone PMI (composite) index was 55.4 against expected 57.3.
The EUR/USD pair dropped to the $1.4060 minimums. European trading session showed minimums of $1.3970.
US Dollar: Greenback was supported as a save-heaven currency today, and strengthened against all its competitors.
British Pound: The GBP/USD pair dropped to the $1.6110 level.
Japanese Yen: The USD/JPY pair demonstrated minimums of Y81.31 and then managed to stabilize.
Oil: Oil rate dropped today and reached the $97.60 mark per barrel.
Gold: Gold prices decreased as well and reached the $1,508.50 mark per ounce.

American trading session:
US Dollar: The American dollar was supported as a result of the stock markets and commodity markets decrease.

Technical analysis for 24/05

The pair has broken daily channel and aiming to 1.39600.
Resistance: 1.41780, 1.42996, 1.44400
Support: 1.40690, 1.39600, 1.38554
If the pair stays below 1.62050 the pair will decline to 1.60322.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
If the pair breaks 0.88418 the pair will rise to 0.89635.
Resistance: 0.88418, 0.89635, 0.91079
Support: 0.87214, 0.85939, 0.84685
The pair is trying to decline below 81.399. It will bring pair to 80.438.
Resistance: 81.399, 82.219, 83.065
Support: 80.438, 79.707, 78.345
The pair has declined to 1.05322. If this level is broken the pair will decline to 1.04407.
Resistance: 1.06164, 1.07005, 1.07739
Support: 1.05332, 1.04407, 1.03535