Forex-Metal Daily Analysis -24/04/2012

The US dollar became more expensive amid the upcoming meeting of the Federal Reserve.


Asian and European trading sessions:

The Euro slightly declined against the dollar during the European session on the background of weak reports on of business activity in the industrial and service sectors in France, Germany and the Eurozone as a whole. All results of the reports except for the French index of business activity manufacturing sector did not meet the expectations of the analysts. In details, the German index of business activity in the service sector recorded the value of 52.1 in April versus forecasted 52.4, the index of business activity manufacturing sector of Eurozone showed 47.7 values versus forecasted 48.2.The EUR / USD pair accelerated its down towards the ebd of the session falling to the area of $1.3118.

US Dollar: regarding monetary policy, the dollar became more expensive relative to major traded currencies supporting the idea that the Federal Reserve would not take any steps for stimulation the economy in the future. The meeting will be held on this week, April 24-25.

British Pound: The GBP / USD pair traded lower today and fell into the region of the $ 1.6070 where it finally found the support.

Japanese Yen: The yen rose against the background of the political events in France and the Eurozone bond’s auction which were leading the direction of the market today. More and more investors tried to avoid the risk today transferring their actives to safe heaven currencies. The USD / JPY during the both sessions had a strong down trend and by the end of the European session dropped into the area of Y80.96.

Australian dollar: The Australian dollar fell against all 16 major currencies after the Producer Price Index for Australia declined by 0.3% in 1Q of the 2012 in QoQ basis compared with the forecasted grow by 0.4% and previous quarter, when growth was 0.3%

American trading session:

US Dollar: The report from HSBC on the index of business activity in the manufacturing sector in China came out even higher than the previous values (49.1 vs. 48.3) triggered the demand for the dollar. The reason for that kind of reaction was the fact that the result of the report still remained below the 50 points value.

Oil: The Oil prices suffered the big sell off after the release of data on the reduction of production in China and the euro area. The cost of the June futures of WTI today was falling in a moment to 101.63 dollars per barrel on the NYMEX.

Gold: The Gold prices on Monday on the background of the strengthening of the dollar against most world currencies declined into the area of $ 1624.4 per troy ounce. However, the metal’s prices were able to recover in a sharp pull back almost covering the losses of this day.


Technical analysis for 24/04


The pair has drawn Double Top. If the pair breaks the figure’s neckline 1.30277 the pair will decline first to 1.28630. 
Resistance: 1.31674, 1.33143, 1.34882 
Support: 1.30277, 1.28630, 1.26897 
The pair has broken 1.60322 and aiming to 1.62050. 
Resistance: 1.60322, 1.62050, 1.63316 
Support: 1.58543, 1.56722, 1.54842 
The pair is trading in the Triangle. Figure’s resistance is 0.92181, support is 0.90498. 
Resistance: 0.92026, 0.93069, 0.93949 
Support: 0.91079, 0.89635, 0.88418 
The pair has tested the Moving Average (500) at 81.399 and rolling back to 80.438. 
Resistance: 81.399, 82.219, 83.065 
Support: 80.438, 79.707, 79.070 
The pair is trading in the range between Moving Averages (100 and 500) 1.04407 and 1.02558. If the pair breaks 1.02558 the pair will decline to 1.01744. 
Resistance: 1.03535, 1.04407, 1.05332 
Support: 1.02558, 1.01744, 1.00907