Forex-Metal Daily Analysis -08/05/2012

Technical analysis for 08/05


The pair has reached neckline of Triple Top and if stays below this level may workout the figure, the end maybe expected at 1.26897, after breaking 1.28630.
Resistance: 1.31674, 1.33143, 1.34882 
Support: 1.30277, 1.28630, 1.26897 
The pair stays below 1.62050 trading below this level may bring pair to decline to 1.60322. 
Resistance: 1.62050, 1.63316, 1.64636 
Support: 1.60322, 1.58543, 1.56722 
The pair has broken triangle’s upper line but left unclosed gap at 0.91835. 
Resistance: 0.93069, 0.93949, 0.95074 
Support: 0.92026, 0.91079, 0.89635 
The pair is trading between two Moving Averages (100 and 200) 80.438 and 79.707. 
Resistance: 80.438, 81.399, 82.219 
Support: 79.707, 79.070, 77.539 
The pair is aiming to the median line at 1.00907. 
Resistance: 1.01744, 1.02558, 1.03535 
Support: 1.00907, 1.00067, 0.99207


Market review for 07.05.12: The Euro was driven by the political news today.


Asian and European trading sessions:

Euro: The Euro was driven by the political news today. It fell steeply on the early morning sessions below the $1.30.The currency fell today on the result of elections in France. Today France got a new president, Mr. Francois Hollande. The loss of previous president, Mr. Nicolas Sarkozy had negative impact for the Euro. The single currency fell against the US dollar to the three months lows, the region of $1.2956, showing the biggest drop since September 2011. During the European session, the euro compensated some of its losses against its main competitors strengthening against the dollar to the region of $1.3059. The report on industrial orders in Germany, which on the monthly basis in March was significantly better than expected provide positive support for the currency trading dynamics .

British Pound: The Britain’s financial markets were closed today in connections with May’s Bank holidays. The GBP / USD pair traded lower in the Asian pair continuing Friday’s decline yet was able to recover and strengthen to the maximums at $ 1.6194 on the backdrop of weakening the dollar at the European trading session.

Australian dollar: Despite of the positive macroeconomic statistics, which recorded a growth in retail sales in March on monthly basis by 0.9% after a revised 0.3% gain of the previous month, the Australian dollar continued its strong fall also today. The number of Building Approvals grew by 7.4 percent in March, after falling in February by 8.8 percent and triggered some players to take profit on their short positions taken on this currency a week ago.

American trading session:

Euro: The speech of the representative of the Government of Germany, who noted that the relationship between German Chancellor, Ms.Angela Merkel and the new President of France, Mr. Francois Hollande will be kept and developed successfully, supported the euro during all session. The EUR / USD couple grew to the region of $1.3064.

Gold: The Gold traded down on Monday on election’s results of France. Moreover, the investors still have concerns about the implementation of existing programs and budget savings procedures in Greece. The cost of the June gold futures on the COMEX fell today to $ 1632 however were able to recover to the region of $ 1640.6 per troy ounce later.

Oil: Oil continued its strong downtrend falling to the lowest level of $96.45 on the election’s results in France. However, at the American trading session the black gold showed some strength and by the end of the day the WTI futures were traded around $98 area.