Forex-Metal Daily Analysis – 06/09/2011

US dollar strengthens.

Asian and European trading sessions:
Euro: German Chancellor Angela Merkel could not get maximum votes, which resulted in a considerable drop of the euro. EUR/USD pair decreased to $1.4109 minimums. The euro dropped to its 3-week minimums against the yen as well.
US Dollar: Market instability supported the demand for the save-heaven assets, and the US dollar strengthened.
British Pound: Released UK statistics influenced the dynamics of the pound. The Purchasing Manager index (services) decreased in August to 51.1 against expected 54.0. Therefore, the GBP/USD reached minimums of $1,6100.
Japanese Yen: The USD/JPY pair traded in the range of Y76,70-Y76,95.
Swiss Franc: As a save-heaven currency, the Swiss franc was supported against its competitors as well today. Decrease of the main European stock markets rendered support to the save-heaven assets.
Gold: Gold reached the $1,900 level again.

American trading session: Financial markets in the US were closed on Monday due to the celebration of the Labor Day.

Technical analysis for 6/09

The pair has declined to 1.40690. If this level is broken the pair will decline to 1.39600.
Resistance: 1.41780, 1.42996, 1.44400
Support: 1.40690, 1.39600, 1.38554
The pair is aiming to 1.60322.
Resistance: 1.62050, 1.63316, 1.64636
Support: 1.60322, 1.58543, 1.56722
The pair’s resistance is 0.79115, support 0.77849.
Resistance: 0.79115, 0.80313, 0.81356
Support: 0.77849, 0.76605, 0.75450
The pair has declined to the support level at 76.463. If this level is broken the pair will decline to 75.425.
Resistance: 77.539, 78.345, 79.070
Support: 76.463, 75.425, 74.414
The pair has broken Moving Average (100) and aiming to test Moving Average (200) at 1.04068. But there is unclosed gap at 1.06381 and the pair may try to close it.
Resistance: 1.06164, 1.07005, 1.07739
Support: 1.05332, 1.04407, 1.03535