Forex-Metal Daily Analysis -18/12/2012

Technical analysis for 18.12


The pair has broken Fibonacci and reached resistance 1.31674. The pair may try to reach the Moving Average (500) at 1.32695 if stays above 1.31674. 
Resistance: 1.31674, 1.33143, 1.34882 
Support: 1.30277, 1.28630, 1.26897 
The pair has reached 1.62050. 
Resistance: 1.62050, 1.63316, 1.64636 
Support: 1.60322, 1.58543, 1.56722 
The pair is trying to break 0.92026. If the pair stays below this level the pair will decline to 0.91079. 
Resistance: 0.93069, 0.93949, 0.95074 
Support: 0.92026, 0.91079, 0.89635 
The pair has reached 83.933. 
Resistance: 83.933, 84.866, 85.960 
Support: 83.065, 82.219, 81.399 
The pair has reached resistance 1.05332. If the pair stays below this level the pair will decline to 1.04407. 
Resistance: 1.05332, 1.06164, 1.07005 
Support: 1.04407, 1.03535, 1.02558


Market review for 17.12.12: The Japanese Yen fell to the lowest level since April 2012 on the results of the parliamentary elections in Japan.


Asian and European trading sessions:

Euro: The EUR / USD pair rose to $ 1.3187 before the beginning of the Asian session, but later declined. The trading dynamics of euro showed very small range against almost all other major currencies. The data on the trade balance of the euro area had a little influence on the dynamics of euro couples. The October’s weighted data showed that the Euro-zone Trade Balance decreased from € 11 billion to € 7.9 billion versus expected of € 11.0 billion, while excluding seasonal adjustment index increased more than expected, from € 9.5 billion to € 10.2 billion (versus expectations of € 11.0 billion). Also, the markets did not pay their attention on Greece’s finance minister calls for the introduction of measures aimed for stimulating growth of the economy.

U.S. Dollar: Demand for the dollar was supported by the continuing uncertainty about the “fiscal cliff” in the United States. The Dollar index was up to 79.67 at the European session.

Japanese Yen: The yen fell to the lowest level since April 2012, its 8.5- month low against the euro and a 20-month low against the dollar on the results of the parliamentary elections, which brought to power the Liberal Democratic Party in Japan. The USD / JPY pair gapped to Y84.32 before the Asian session. During the European session the pair fell to Y83.60 closing its gap then recovered slightly.

American trading session:

U.S. Dollar: The dollar tried to recover against most major currencies, rising on the negotiations on the U.S. budget. However, the pressure on the currency was provided today by published data on the index of Empire Manufacturing in December, which declined sharply, reaching the mark of -8.1, compared with -5.22 in November, while analysts expected that the value of this indicator will be at -1.0 values.

Canadian dollar: The Canadian dollar showed significant growth moving up sharply after the publication of data, which showed that an investment of Canadians in foreign securities declined much less than expected. According to the report, investments fell to 13.26 billion, compared to 14.12 billion last month, and expectations at around 9.81 billion Canadian dollars.

Gold: Gold prices rose slightly recovered from recent losses on the prospects of monetary stimulus in Japan. 
The February spot gold prices rose by 0.12 % to $1,699.6 per ounce on the COMEX today.

Oil: The January futures price of WTI rose to 87.68 dollars a barrel at the NYMEX today. Prices grew by 1%, after the House Speaker John Boehner proposed to raise income tax rates of households whose income is more than $ 1 million a year in exchange for control of expenses.