Forex-Metal Daily Analysis -07/02/2012

The expectations of possible default in Greece are growing.

Asian and European trading sessions:

Euro: The euro fell against almost all major currencies during the Asian session, on the eve of today’s speech, of the Greek leaders, who had to report to international lenders about the progress made on economic reforms. The EUR / USD pair dropped to $1.3056 level. During the European trading session the couple fell even more to $1.3027 area due to the reason of growing expectations of possible default in Greece. The published report on manufacturing orders in Germany, the results of which in December were higher than forecasted, temporary supported the Euro currency and the EUR / USD couple strengthened to $1.3100 area.

US Dollar: Supported U.S. dollar positive dynamics today the Friday’s positive report of U.S. labour market. The currency was also running up against its competitors on background of negative trading dynamics in the major European stock exchanges.

British Pound: The GBP/USD pair had a quite volatile both sessions today firstly setting its daily low of the $1.5730, than boosting to the highs of $1.5837 level.

Japanese Yen: The USD/JPY continued to rise today, supported by the Friday’s statements of the President of the Federal Reserve of St. Louis, James Ballard, who said that the U.S. central bank will not ease again its monetary policy in the future.

American trading session:

Euro: The euro strengthened to $1.3140 area, almost taking back all of its losses due to the news of possible progress in negotiations on Greek debt provided by EU President Van Rompuy and EU Commissioner for Greece.

Gold: Gold became cheaper due to the strengthening of the dollar. The cost of the February’s Gold futures fell to 1711.6 dollars per ounce.

Oil: The WTI (Light Sweet Crude Oil) dropped to 97.08 dollars per barrel.

Japanese Yen: After the head of the Bank of Japan in his speech said that the country’s economic situation is tough due to deflation and a strong national currency the yen rose against its major competitors.

Technical analysis for 07/02

EURUSD
The pair has risen to 1.31674.
Resistance: 1.31674, 1.33143, 1.34882
Support: 1.30277, 1.28630, 1.25690
GBPUSD
The pair has risen to resistance 1.58543. If the pair stays below this level the pair will decline to 1.56722.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
USDCHF
The pair has found support at 0.91079 and may roll back to Moving Average (500) at 0.93069.
Resistance: 0.93069, 0.93949, 0.95074
Support: 0.92026, 0.91079, 0.89635
USDJPY
The pair has broken support 76.463 and trading round this support.
Resistance: 76.463, 77.539, 78.345
Support: 75.425, 74.414, 73.573
AUDUSD
The pair has risen to 1.07739 and rolling back to 1.07005. If 1.07005 is broken the pair will decline to 1.06164.
Resistance: 1.07739, 1.08413, 1.09112
Support: 1.07005, 1.06164, 1.05332