Forex-Metal Daily Analysis -19/09/2012

Market review for 18.09.12: The started yesterday the two-day meeting of BOJ in the focus of market participants.


Asian and European trading sessions:

Euro: The EUR / USD pair tried to trade in the range of $ 1.3088-1.3118 during the Asian session, however, fell by more than half the figure at the next following session. The currency weakened against almost all counterparts due to the negative sentiment at the European stock markets on the background of fears that there may be a delay in the provision of financial resources to Spain which needs it to solve its financial problems. Accordingly the published today report on the economic sentiment in Germany’s business environment from the institute ZEW, the result has improved in September, after decline for four months in a row. The index has increased by 7.3 points to -18.2 levels. The pair continued its decline to the level of $ 1.3045 even despite the improvement of the result, probably considering that the index still remained negative this month for the reason of fading optimism in resolving the debt crisis in the region.

Japanese Yen: In the focus of market participants was still started yesterday two-day meeting of the Bank of Japan. One of expectations of the result of this meeting is expectation that the central bank will take some measures to ease the monetary policy for keeping the yen strength in the short term. The USD / JPY pair traded near a one-week low against the U.S. dollar in the range of Y78.48- 75.

Swiss franc: The Swiss franc strengthened after the government’s expert group has cut its forecast for growth this and next year on the background of the fact that the debt crisis in the Eurozone is the reason for the slowdown in exports in Switzerland.

American trading session:

Japanese Yen: The USD / JPY pair got pushed upwards during the session on speculations that the Bank of Japan will conduct an intervention after the meeting on September 17-18. The markets also waited even more active than an intervention that the Bank of Japan’s will announce new measures to support the economy after the Federal Reserve and the European Central Bank have recently announced theirs.

Australian dollar: The Australian dollar was traded in range against the U.S. dollar after yesterday rally amid growing speculations of lowering the interest rates in the approaching meeting of the Reserve Bank of Australia.

Gold: The Gold traded lower along with the negative trading directions on stock markets. Market players were taking profits after the price has recently increased to a maximum of 2012 year. The cost of October futures price of gold closed 1770.4 dollars per ounce on the COMEX.

Silver: October futures of silver were not also in demand today. The price of silver closed 34.74 dollars per ounce on the COMEX.

Oil: The WTI oil futures tested recently reached lows of $ 95.10 a barrel on the NYMEX today. The yesterday downhill in prices was the biggest drop in two months, on fears that the U.S. economic slowdown may curb demand for oil in U.S, which is the world largest oil consumer.


Technical analysis for 19.09


The pair has reached Fibonacci 38% at 1.31197 and rolling back to 1.30277. 
Resistance: 1.31674, 1.33143, 1.34882 
Support: 1.30277, 1.28630, 1.26897 
The pair has broken 1.62050 and may try to reach 1.63316. 
Resistance: 1.63316, 1.64636, 1.65706 
Support: 1.62050, 1.60322, 1.58543 
The pair stays below 0.93069 it may bring pair to decline to 0.92026. 
Resistance: 0.93069, 0.93949, 0.95047 
Support: 0.92026, 0.91079, 0.89635 
The pair has tested the Moving Average (100) and rolling back to 78.345. 
Resistance: 79.070, 79.707, 80.438 
Support: 78.345, 77.539, 76.463 
The pair is rolling back to 1.04407. If this level is broken the pair will decline to 1.03535.
Resistance: 1.04407, 1.05332, 1.06164 
Support: 1.03535, 1.02558, 1.01744