Forex-Metal Daily Analysis – 14/09/2011

European crises is spreading in Europe and the euro stays under pressure.

Asian and European trading sessions:
Euro: The Euro was trading near its maximums during the Asian session. Further strengthening of Euro currency was constrained by fears concerning the further spreading out of the debt crisis in the region.
As a result, at the beginning of the European session the EUR/USD pair renewed its decrease and fell to its second day low at $1.3557. In contrast, the discussions about the China’s help for Italy supported Euro currency to recover against the dollar and strengthen to its daily highs at $1.3737 area.
British Pound: The GBP/USD pair remained in the range of $1.5828 – $1.5868 during the Asian trading session. Later on the speech of one of Bank of England representative, Mr. Posen, had put a negative effect on the dynamics of GBP trading and prevented it from growing over its previous session high. He stated that the Bank of England must make a decision about the new 50- billion purchase of the assets within the next three months.
The pair started to fall and showed its daily low at $1.5760. The British pound was prevented from moving even lower by the reports of Retail Price Index, which was more or less concurrent with the forecasts. After this UK Inflation data the British Pound showed a slight increase and strengthened against the US Dollar.
Japanese Yen: Investors continued to accumulate their positions in the Yen. Taking into account the fact that a question of expensive yen was not solved during the G7 summit, the market was surrounded by the rumours that the Bank of Japan may follow the way of the SNB.
Oil: Oil established maximum at $90.51and closed at 89.74 per barrel today.
Gold: Gold price grew and reached the level of $1834.90 for ounce.

American trading session:
New-Zealand Dollar: Market participants are awaiting for the decision of the Reserve Bank of New-Zealand regarding the interest rate in the next 24 hours.


Technical analysis for 14/09

The pair has declined to Fibonacci retracement 50% and may roll back to 61% at 1.38554.
Resistance: 1.37486, 1.38554, 1.39600
Support: 1.35984, 1.34882, 1.33143
The pair has broken support at 1.58543 and aiming to 1.56722.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
The pair is correcting and may decline to 0.87214.
Resistance: 0.88418, 0.89635, 0.91079
Support: 0.87214, 0.85939, 0.84685
The pair could not break 77.539 and aiming to 76.463.
Resistance: 77.539, 78.345, 79.070
Support: 76.463, 75.425, 74.414
The pair has broken 1.02558 and aiming to 1.01744.
Resistance: 1.02558, 1.03535, 1.04407
Support: 1.01744, 1.00907, 1.00067