Forex-Metal Daily Analysis -09/10/2012

Market review for 08.10.12: Although, many markets were closed today, there were some movers and actions.


Asian and European trading sessions:

Euro: During the Asian session the pressure on euro was provided by continued uncertainty related to the subjects as asking for financial help by Spain and reaching a new agreement between Greece and international lenders. The EUR / USD pair dropped to $ 1.2983 level and continued falling after the publication of the Euro-Zone Sentix Investor Confidence report, the result of which showed decrease in October to -22.2 versus forecasted values of -20.9 The EUR / USD pair the fell to $ 1.2937 area during the European session.

U.S. Dollar: The dollar index rose today by more than 0.5% against the meeting of European finance ministers in Luxembourg, as well as on speculations that Spain is trying to avoid the need for financial help at the expense of the growth of its own sovereign debt.

Japanese Yen: Japanese markets are closed today for a national holiday in the country. The USD / JPY pair during both sessions fell to Y78.11. The yen grew today amid published by the World Bank downgraded forecasts for GDP of Asia region (excluding Japan and India).So, it is expected that the economic growth of GDP will increase at its slowest pace since 2001 by only 7.2% in the current year, whereas previously predicted was at 7.6%. Moreover, the forecasts for 2013 were also reduced, so the growth of the rate will be 7.6% instead of 8 %, as it was expected before , which is primarily due to the slowdown of the Chinese economy.

Australian dollar: On the background of weakness of the Asian stock markets, the Australian dollar updated its three months low against the U.S. dollar. The speculations on the results of the unemployment rate report in the country, which will be published later this week, provided adverse impact on the Australian currency’s trading dynamics. According to the median estimate of economists, the unemployment rate in Australia last month will probably grow to 5.3% from 5.1 %.

American trading session:

The North American markets were partially closed in the connection with celebrating of the National holidays as Thanksgiving in Canada and Columbus Day in U.S.

British Pound: Pound decline today against its rivals as a Lloyds Employment Confidence report conducted by Lloyds Bank showed that the assessment of the prospects of employment index fell in September to -49 from -43 in August. The GBP /USD pair dropped to $1.6020 area.

Gold: Although, most of the day gold futures trading dynamics showed a significant reduction on the strengthening of the dollar thus resulted a decline in demand for the precious metal, the October prices futures price of gold were able to recover to1775.1 dollars per ounce on the COMEX. 

Oil: The November WTI, U.S. Light Sweet Crude oil futures retreated on Monday to $88.20 per barrel as concerns about the debt crisis in the Eurozone continue to have an impact on reducing the demand for oil. However, on the NYMEX the prices were able to recover to $89.86 per barrel against the background of the worsening dispute between the political elite of Iran.


Technical analysis for 9.10


The pair has risen to the resistance level at 1.30277. 
Resistance: 1.30277, 1.31674, 1.33143 
Support: 1.28630, 1.26897, 1.25690 
The pair is trading between 1.62050 and 1.60322. If 1.60322 is broken the pair will decline to the Moving Average (500) at 1.59263. 
Resistance: 1.62050, 1.63316, 1.64636 
Support: 1.60322, 1.58543, 1.56722 
The pair is trying to rise to the Moving Average (500) at 0.93949. 
Resistance: 0.93949, 0.95047, 0.96220 
Support: 0.93069, 0.92026, 0.91079 
If the pair stays above 78.345 the pair will rise to the next resistance level at 79.070. 
Resistance: 79.070, 79.707, 80.438 
Support: 78.345, 77.539, 76.463 
The pair is aiming to 1.02558. 
Resistance: 1.02558, 1.03535, 1.04407 
Support: 1.01744, 1.00907, 1.00067