Forex-Metal Daily Analysis – 18/10/2011

Europe may need more time to solve the problem of sovereign debt.

Asian and European trading sessions:
Euro: The euro fell against the Japanese yen and US dollar during the Asian trading session (minimum of $1.3822 during this session). Much of this negative rally was caused by the profit fixation of the long positions. The Euro continued falling down through all European session as well ($1.3739 lows) because the investors and traders were not encouraged by the results of the G20 summit, which ended in Paris during the weekend. None of the specific measures to resolve the current crisis have been proposed at this summit.

US Dollar: Decline in the stock market indices supported the US Dollar today.

British Pound: The pound dropped against the dollar and the yen amid existing fears that additional incentives of the Bank of England would not be enough to revive economic growth. The GBP/USD pair has shown minimums in area of $1.5730 during the European trading session.

Japanese Yen: The yen strengthened slightly against the US Dollar against the background of the situation in the EU. During the Asian trading session the USD/JPY pair showed its daily high in the area of Y77.45, but later during the European trading session the pair dropped steeply and set the low of this day at Y76.595 level.
Australian Dollar: The Australian dollar fell ahead of tomorrow’s Reserve Bank of Australia meeting.
Gold: Today’s trade range was around the $1664 – $1694 level per ounce.
Oil: set its new highs at $88.16, but closed the day at the $86.36 mark per barrel.

American trading session:
Commodity currencies (Canadian, New Zealand and Australian dollars) updated daily minimums against the United States dollar.
The British pound fell for the first time in four days against the dollar after Ernst & Young agency reduced the growth forecast for the UK.


Technical analysis for 18/10

The pair has tested Fibonacci level 61% at 1.38871 and rolled back to 1.37486. The pair may continue declining to 1.35984.
Resistance: 1.38554, 1.39600, 1.40690
Support: 1.37486, 1.35984, 1.34882
The pair has worked out Double Bottom.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
The pair has declined to 0.89635. If this level is broken the pair will decline to 0.88418.
Resistance: 0.91079, 0.92026, 0.93069
Support: 0.89635, 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 tested Moving Average (100) at 1.02879 and rolling back to
Resistance: 1.01744, 1.02558, 1.03535
Support: 1.00907, 1.00067, 0.99207