Forex-Metal Daily Analysis – 27/10/2011

The yen renewed its historical maximum against the US dollar.

Asian and European trading sessions:
Euro: Market participants are looking forward to the results of the European Union Summit, which has started today. The EUR/USD pair traded moderately during the Asian trading session in the narrow range of $1.3893 – $1.3945.

US Dollar: Greenback was under pressure today for a couple of reasons. Investors were waiting for the Durable goods orders report as well as for the numbers from the United States real estate market. Reinforced speculations over the rumours that the FRS would agree on the new stage of quantitative easing had a negative impact on the US currency as well.

Australian Dollar: Australian dollar continued to decrease for another day against most major currencies after the released slowdown in consumer prices today. Investors forecasted that the Reserve bank of Australia would decrease the interest rates.

British Pound: The early Asian trading session was more successful for the GBP/USD pair which updated its weekly maximum at $1.6040 area.
Japanese Yen: Japanese currency continued strengthening today despite of the speech of the finance minister of Japan, Mr. Azumi, who stated that the Bank of Japan would take “decisive” measures in order to stop the increase of the yen. The yen rose yesterday on stimulated demand for the save-heaven currencies and also renewed its historical maximum today against the US dollar by reaching the Y75.70 level.

American trading session:
Euro dropped against the US dollar as the negotiations regarding the write-off the Greek debts by the bonds’ holders did not have any result, which reinforced the uncertainty of the European crises situation.
British pound decreased against the greenback as well (set daily lows at $1.5889) after the released today CBI Trends total orders, which showed the most serious drop in 2 years.
Canadian dollar demonstrated its strong growth against the US dollar and the euro against the background of the released data on the US durable goods orders, since the US is the leading Canadian trade partner.

Technical analysis for 27/10

The pair is testing Moving Average (200) at 1.39600. If the pair breaks this level the pair will rise to 1.40690.
Resistance: 1.39600, 1.40690, 1.41780
Support: 1.38554, 1.37486, 1.35984
The pair has risen to the Moving Average (200) at 1.60322. If the pair breaks this level the pair will rise to 1.62050.
Resistance: 1.60322, 1.62050, 1.63316
Support: 1.58543, 1.56722, 1.54842
The pair has broken to 0.88418 and aiming to 0.87214.
Resistance: 0.88418, 0.89635, 0.91079
Support: 0.87214, 0.85939, 0.84685
The pair has broken 76.463 and aiming to 75.425.
Resistance: 76.463, 77.539, 78.345
Support: 75.425, 74.414, 73.377
The pair has broken 1.04407 and aiming to 1.05332.
Resistance: 1.05332, 1.06164, 1.07005
Support: 1.04407, 1.03535, 1.02558