Forex-Metal Daily Analysis -19/07/2011

Concerns and expectations for the European Summit.

Asian and European trading session:
Euro: Euro started the week by showing losses against major currencies on concerns about the fact that European leaders were unable to agree on measures aimed at stopping the further spread of the debt crisis in the EU. Next summit of the European leaders was scheduled for July 21, which was the main reason of investors’ unconfident behavior on Monday.
The EUR /USD pair hit its minimums of $ 1.4010. During the European trading session the euro managed to rehabilitate to $1.4050.
US Dollar: The dollar rose as risk aversion grew following the increased Euro-zone debt fears. Uncertainty over the ongoing crisis of Greece, concerns about the banking system in the EU and fresh doubts about Italy’s solvency resulted in increased safe-heaven buying.
British Pound: The GBP/USD pair traded in the range of $1.6060-$1.6130.

Japanese Yen: The yen was stabilizing as a save-heaven as well. The USDF/JPY traded in the range of Y78.90-Y79.20.
Swiss franc: Swiss franc continues to strengthen against major currencies against the backdrop of increased demand for the currency with the status of save-heaven.
Australian Dollar: The Australian dollar fell against the lower interest rate expectations the RBA in the next 12 months.
Oil: Oil prices were also pressured by the European crises, and resulted in a decrease to $97.19 per barrel.
Gold: Gold prices renewed its historical maximums of $1.603.80 per ounce.

American trading session:
US Dollar: Market participants were also concerns over the discussions regarding the increase of the US National debt level. Technical default of the US economy became possible.


Technical analysis for 19/07

The pair has broken support level and aiming to reach Fibonacci 61.8% at 1.38867. Strong support is at median line at 1.37486.
Resistance: 1.41780, 1.42996, 1.44400
Support: 1.40690, 1.38554, 1.37486
The pair has declined to 1.60322. If the pair stays below this level the pair will decline to 1.58543.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair is aiming to 0.82483. If this level is broken the pair will rise to 0.83541.
Resistance: 0.82483, 0.83541, 0.84685
Support: 0.81356, 0.80313, 0.79115
The pair has broken 79.070 and aiming to 78.345.
Resistance: 79.070, 79.707, 80.438
Support: 78.345, 77.539, 76.463
The pair may decline to median line at 1.05332.
Resistance: 1.07005, 1.07739, 1.08413
Support: 1.06164, 1.05332, 1.04407