Forex-Metal Daily Analysis -20/03/2012

The statements of German Chancellor, Ms. Angela Merkel provided support for the Euro currency.


Asian and European trading sessions:

Euro: The support for the Euro currency today were delivered by statements of German Chancellor, Ms. Angela Merkel, who reported that the themes of the last meeting of European officials were discussions on providing solutions for increasing help for the Euro region financial system. The EUR / USD pair traded between $ 1.3140 -$ 1.3180 levels during the both sessions. There was a pressure on the euro due to positive data from the U.S. released on previous week, thereby reduced investor’s demand for the European assets.

US Dollar: The U.S. dollar continued its downtrend started on Friday, after release of the report on consumer inflation in the U.S., which fell under the forecasted values. The market participants revised today their expectations of the continuation of the Fed’s quantitative easing program after the Friday’s negative macroeconomic statistics.

Japanese Yen: The USD/JPY pair traded near its pivot line of Y83.3 level on Asian session. At the beginning of the European trading session the Yen strengthened against competitors on speculation about the fact of its excessive oversold against major currencies due to the recent decline.

American trading session:

Euro: The Euro repeated its Friday’s jump against the dollar and the EUR/USD couple broke its 100 -day moving average. This fact was an issue for speculation related to the Euro’s uptrend continuation from a technical point of view.

Swiss Franc: The Franc increased today due to the falling of the U.S. dollar index as investors were selling the American currency in the favor of the Swiss Franc.

Oil: April WTI oil futures price rose to 108.30 dollars per barrel today.Oil prices raised on Monday against the backdrop of the January data on raw production volumes of Saudi Arabia.

Gold: The cost of Gold increased today on the background of published information on the balance of payments of Euro-zone. The April Gold closed this day at $ 1664.1 per troy ounce.


Technical analysis for 20/03


The pair is aiming to 1.33143. 
Resistance: 1.33143, 1.34882, 1.35984 
Support: 1.31674, 1.30277, 1.28630 
The pair has risen to the Moving Average (500) at 1.59115 and rolling back to 1.58543. If the pair breaks 1.58543 the pair will decline to 1.56722. 
Resistance: 1.58543, 1.60322, 1.62050 
Support: 1.56722, 1.54842, 1.53482 
The pair has declined to 0.91079 and may continue declining to 0.89635. 
Resistance: 0.92026, 0.93069, 0.93949 
Support: 0.91079, 0.89635, 0.88418 
The pair is aiming to the channel line at 83.933. 
Resistance: 83.933, 84.866, 85.960 
Support: 83.065, 82.219, 81.399 
The pair is rolling back to 1.05332. 
Resistance: 1.06164, 1.07005, 1.07739 
Support: 1.05332, 1.04407, 1.03535