Forex-Metal Daily Analysis -28/03/2012

The Bank of Japan is ready to fight the defilation in Japan.

Asian and European trading sessions:

Euro: The EUR / USD pair traded today in a narrow range showing its maximum at the $ 1.3383 and minimum at the $1.3326 level.

US Dollar: The dollar traded lower today not far from monthly lows against the euro amid speculations that the U.S. Federal Reserve will proceed to the third round of quantitative easing, QE3. The Federal Reserve Chairman Mr. Bernanke in his yesterday speech hinted that the central bank, will keep an adaptive monetary policy as the American economy still needs the financial support for reducing the unemployment rate in the U.S. The greenback declined against almost all traded currencies. However, at the European trading session the U.S. dollar got supported by negative trading stock markets’ dynamics, which increased the demand for U.S. dollar, as for a currency with safe haven status.

American trading session:

Euro: The euro retreated from daily highs against the dollar due to the negative situation at the stock markets The economics statistics were not supportive today as well; in details, the S & P / Case-Shiller Composite-20 index in January fell by 3.8 % (YoY). Although the value matched the forecasts of analysts, there was recorded the reducing of the indicator recorded for the fifth consecutive month. Also, the Conference Board reported that consumer confidence in the U.S. economy in March dropped to 70.2 points, which was though higher than expectations but much lower from the revised 71.6 points for February.

Japanese Yen: The yen fell on rumors after the head of the Bank of Japan, Shirakawa said the importance of the victory over deflation. He stated that for fighting the deflation the Japan will need a strong economy growth and monetary policy support. However, for the stimulation of the economy growth, not only the Central Bank’s liquidity injections might be required.

Oil: Oil fell after a representative of the Department of Energy announced that the U.S. can open strategic reserves of oil. May’s WTI oil futures fell to 106.53 dollars a barrel on the New York Mercantile Exchange.

Gold: The April futures price of gold rose today rose to $ 1696.93 per troy ounce on the background of growing expectations of keeping low interest rates in the United States as well as of rumors on starting of Q3 program in the nearest future.


Technical analysis for 28/03


The pair has nearly touched the Moving Average (200) at 1.34111 and rolling back to 1.31674. 
Resistance: 1.33143, 1.34882, 1.35984 
Support: 1.31674, 1.30277, 1.28630 
The pair’s resistance is 1.60322, support 1.58543. 
Resistance: 1.60322, 1.62050, 1.63316 
Support: 1.58543, 1.56722, 1.54842 
If the pair breaks 0.91079 the pair will rise to 0.92026. 
Resistance: 0.91079, 0.92026, 0.93069 
Support: 0.89635, 0.88418, 0.87214 
If the pair stays above 83.065 the pair will rise to 83.933. If the pair stays below 83.065 the pair will decline to 82.219. 
Resistance: 83.065, 83.933, 84.866 
Support: 82.219, 81.399, 80.438 
If the pair stays below 1.04407 the pair will decline to 1.03535. 
Resistance: 1.05332, 1.06164, 1.07005 
Support: 1.04407, 1.03535, 1.02558