Forex-Metal Daily Analysis – 06/10/2011

The speech of Bernanke inspired the markets. The Euro showed moderate growth.

Asian and European trading sessions:
Euro: During the Asian trading session the Euro stepped a bit down after yesterday’s significant recovery against the US dollar. The EUR/USD pair traded in the range of $1.3261 – $1.3332. During the European trading session the couple strengthened at the $1.3375 area against the background of speculations relative to the fact that the European Union leaders examined the possibility of further measures aimed for limiting the negative impact of the current debt crisis on the bank system financial condition. The growth of the Euro was limited after the released information from Moody’s Investors Service which decreased the credit rating of Italy from “Aa2” to “A2”. As a result, the EUR/USD pair retreated to its today’s pivot level around the $1.3275 mark.
US Dollar: The US dollar was pressured today by the yesterday’s speech of the head of the US Federal Reserve Ben Bernanke, which resulted in increased investor expectations regarding the next round of quantitative easing.
British Pound: The GBP/USD range for both sessions was $1.5393 – $1.5491.
The New Zealand Dollar: The “Kiwi” strengthened during the Asian session. The national currency was supported by the Financial Times article about the possibility that EU financial leaders would consider the plan for the banks’ recapitalization.

American trading session:
The pound dropped against the euro after the released UK report, which showed the economic growth slow-down during the second quarter. The pound decreased for 0.3% to the $1,5438 minimums.
The US dollar strengthened against the yen after the published US business activity services index, which turned to be above the forecasted level in September.



Technical analysis for 6/10

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 pair is aiming to test Moving Average (500) at 0.93606.
Resistance: 0.93069, 0.93949, 0.95074
Support: 0.92026, 0.91079, 0.88418
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 reached resistance 0.96579. If the pair stays below this level the pair will decline to 0.95611.
Resistance: 0.96579, 0.97423, 0.98436
Support: 0.95611, 0.94635, 0.93493