Forex-Metal Daily Analysis -11/04/2012

The Federal Reserve Chairman, Mr. Ben Bernanke said that the U.S. recovery was far from being complete.


Asian and European trading sessions:

Euro: Euro fell against almost all major currencies during the first half of the European trading session, amid growing fears of a new round of crisis in Europe. The reason for these fears was a growth of government bond’s yields of Spain and Italy. The EUR / USD pair although went to test traded couple yesterday’s highs at the $1.3141 level in the Asian session, got hammered from there later and rebounded to the lows of $ 1.3060.

US Dollar: After Federal Reserve Chairman Mr. Ben Bernanke said the U.S. economy was far from being complete, the U.S dollar fell against most traded currencies. These statements might suggest that the Fed may increase the economic stimulus measures in a nearest future. Mr. Ben Bernanke in his speech considered that the April 6 report of the Ministry of Labor, which showed that in March, U.S. employers hired 120,000 workers, was still weak and even worse than the most pessimistic forecast 
British Pound: The GBP / USD pair tried to copy the EUR / USD trading dynamics during both sessions. However, the couple suffered bigger intraday sell-off falling from highs of $1.5930 to lows of $1.5808. Later the couple strengthened to the area of $ 1.5881.

Japanese Yen: The Bank Japan left its interest rate unchanged at 0 to 0, 1 percent. It was a good sign for the yen and it rose against all 16 major currencies. The decision of the Bank matched forecasts, however, the financial market still remains expectations that the central bank may try to demonstrate its readiness to fight for achieving recently targeted level of inflation. The USD / JPY pair traded down during both sessions moving lower then yesterday’s lows and dropping into an area of Y80, 83.

Australian and New Zealand dollar: On the background of the Bank of Japan’s decision of leaving its monetary policy unchanged the Australian and New Zealand dollar dropped against their competitors. The pressure on these currencies trading dynamics was also provided by the negative words of Chinese officials, who said that the global economic situation remains “grim “.

American trading session:

Japanese Yen: The yen continued its uptrend against the dollar and many other traded currencies amid growing demand for the safe haven assets, which was increased after the Federal Reserve Chairman, Mr. Ben Bernanke said the U.S. recovery was far from being complete. These words supported for the sellers on stock markets as well.

Oil: The WTI futures fall today l to 100.65 dollars a barrel on the NYMEX. The price of oil was dropping amid decreasing in China’s demand for “black gold” after the publication of weak data on imports to China.

Gold: The Gold prices after suffering big sell off to $1631.70 area strengthened against the dollar. The falling of stock and futures markets, publication of data from the U.S. Labor Department last Friday, and the news about the end of the strike of jewelers in India contributed to an increase in gold prices. The Gold futures strengthened above $1660 area in first hours of American trading session.


Technical analysis for 11/04


The pair has declined to 1.30277 and aiming to 1.31674. 
Resistance: 1.31674, 1.33143, 1.34882 
Support: 1.30277, 1.28630, 1.26897 
The pair rolled back to 1.58543. 
Resistance: 1.60322, 1.62050, 1.63316 
Support: 1.58543, 1.56722, 1.54842 
The pair has reached 0.92026 and rolling back to 0.91079. 
Resistance: 0.92026, 0.93069, 0.93949 
Support: 0.91079, 0.89635, 0.88418 
The pair has broken Moving Average (500) 81.399 and declined to 80.572. The pair may return to the Moving Average at 81.399. 
Resistance: 81.399, 82.219, 83.065 
Support: 80.438, 79.707, 79.070 
The pair has declined to the Moving Average (500) at 1.02558. 
Resistance: 1.03535, 1.04407, 1.05332 
Support: 1.02558, 1.01744, 1.00907