Forex-Metal Daily Analysis – 05/10/2011

Asian and European trading sessions:
Euro: The EUR/USD pair showed minimums during the first half of the day at the $1.3150 range. Concerns over the spreading of the European crises pressured investors. Market participants were discouraged by the fact that Euro-zone financial ministers did not confirm any decision regarding the new tranche for Greece. According to the released information, the decision for the new tranche would be accepted after October 13-th.
British Pound: The GBP/USD dropped as well and reached the $1.5380 minimums.
Japanese Yen: The USD/JPY pair traded in the range of Y76.55-Y76.75.

American trading session:
US Dollar: During the American session major pairs changed its trading dynamics.
Euro: The Euro stabilized during the American trading session after the statement of Ben Bernanke, the Head of the FRS, who said that he was ready for additional measures to stimulate the economy. The EUR/USD reached the $1.3350 maximums.
Australian Dollar: The Australian dollar decreased against the greenback after the announcement that the Reserve Bank of Australia left the principal rate unchanged at the level of 4.75%.
Gold: Gold prices showed a sharp drop today against the background of the reinforced concerns over the crises in Greece.


Technical analysis for 5/10

The pair is trading near Fibonacci retracement 38% at 1.31186. This is a support level for the pair. MACD shows divergence signal and the pair may start corrections in a while.
Resistance: 1.33143, 1.34882, 1.35984
Support: 1.31674, 1.30277, 1.28630
The pair may try to test Fibonacci retracement 23% at 1.53482 if stays below 1.54842.
Resistance: 1.54842, 1.56722, 1.58543
Support: 1.53482, 1.52063, 1.50594
The MACD shows divergence signal and the pair may start corrections if stays below 0.92026. But before corrections the pair may try to test Moving Average (500) at 0.93606.
Resistance: 0.92026, 0.93069, 0.93949
Support: 0.91079, 0.88418, 0.87214
If the pair stays below 76.463 the pair will decline to 75.425. If the pair stays above 76.463 the pair will rise to 77.539.
Resistance: 77.539, 78.345, 79.070
Support: 76.463, 75.425, 74.414
The pair has found temporary support at 0.94635 and rolled back to 0.95611. Now the pair is aiming to 0.94635.
Resistance: 0.95611, 0.96579, 0.97423
Support: 0.94635, 0.93493, 0.92284