Forex-Metal Daily Analysis -15/05/2012

The dollar rose on fears of aggravating the situation in Europe.


Asian and European trading sessions:

Euro: The EUR / USD pair continued to update the monthly minimums. The couple fell by the end of the European session to new lows of 1.2826 areas, to its lowest level for the past three months. The investors had more and more concerns seeing a growing risk of new elections in Greece in June because the new government could not be still formed as well as a possible situation where the Greece would have to leave out the Euro zone union. The others factors were also pressured the euro today. The results of auctions on government bonds of Spain and Italy recorded a growth of profitability. Indeed, the Italy raised 5.25 billion Euros with targeted 3.50-5.25 billion Euros and the average yield of bonds maturing in 2015 rose to the level of 3.91% from 3.89% for a similar previous release. Second negative factor was the result of published report on Industrial production in the euro area, which recorded stronger than the predicted decline in -2.2 % versus forecasted -1.4%.

U.S. Dollar: The Dollar was in demand today on fears that the global economic recovery may be slower than expected as well as on transferring assets by investors towards safe haven currencies. The dollar Index continued climbing today strengthening to the 80.85 region.

British Pound: The GBP / USD pair after trading between $ 1.6049 -$ 1.6081 levels had a big intraday push towards $1.6120area.

Japanese Yen: The USD / JPY couple raised toY80.17 area at the Asian session but after reaching this area got hammered and fell to a minimum of previous week Y79.67 zone in early European session.

Australian dollar: The news that the People’s Bank of China has reduced the reserve requirement for commercial banks by 50 basis points had a negative impact on the currency pushing it down the equal level with US dollar. All news which comes from China may dramatically influence the Australian currency trading dynamics due to the fact that the China is the largest trading partner of Australia. Also, the Australian dollar fell on the reducing investors’ appetite for higher-yielding currencies.

American trading session:

British Pound: The pound rose against traded currencies as investors looked for alternatives for the Euro currency. Also, the support for the currency was provided by the result of recent meeting of the Bank of England, which confirmed that the authorities will unchanged the course of monetary policy and continuation of the program of asset purchases.

Gold: The price of the June Gold futures fell on COMEX today to $ 1556.0 per troy ounce as investors transferred funds to the dollar on fears of aggravating the situation in Europe.

Oil: The cost of the June futures of WTI type of oil fell to $ 93.68 per barrel, the lowest price level since the middle of December 2011. The Oil dropped amid statements of oil minister of Saudi Arabia, which said that Oil prices should fall further.


Technical analysis for 15/05


The pair is working out Triple Top. The end of the figure maybe expected at 1.26897 if the pair stay below 1.28630. 
Resistance: 1.30277, 1.31674, 1.33143 
Support: 1.28630, 1.26897, 1.25690 
The pair stays below 1.62050, if the pair stays below this level the pair will 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 and broken Moving Average (500) at 0.92842, but left unclosed gap at 0.91835. 
Resistance: 0.93949, 0.95074, 0.96220 
Support: 0.93069, 0.92026, 0.91079 
The pair is trading between two Moving Averages (100 and 200). If the pair breaks 79.707 the pair will decline to 79.070. 
Resistance: 80.438, 81.399, 82.219 
Support: 79.707, 79.070, 77.539 
The pair has declined to 0.99403 lower is a strong support at Fibonacci 23% 0.98733. 
Resistance: 1.00067, 1.00907, 1.01744 
Support: 0.99207, 0.98436, 0.97423