Market review for 8 – 12, 2011
Previous trading week showed very volatile dynamics. The announcements that the international rating agency Standard & Poor’s downgraded the credit rating of the United States on Friday and that the S & P agency maintained a “negative” outlook for the U.S. economy and forecasted that the rating could be downgraded to AA from AA + had a very strong influence on the markets on Monday. As a result, the greenback retreated to a record-breaking lowsagainst the franc and reduced against the yen.
The yen was rising against the other currencies on the background of falling stock markets in Asia. The USD/JPY pair was trading in the range of Y77.70 – Y77.90.
The dollar declined against the euro on Tuesday amid speculations that the FRS would report its plans for a new roundof quantitative easing. As a save-heaven currency, the yen rose against the major currencies on concerns about the slowing economic growth in the U.S. and on the EU debt crisis. The USD/JPY showed minimums around the Y77.00 level.
Dollar managed to show some strengthening on Wednesday after the results of the FOMC meeting, where the interest rates were left unchanged at the 0% – 0.25% range. The EUR/USD pair decreased to $1.4350 mark. Later on the EUR/USD dropped to minimums of $1.4200. Sterling followed the euro and the GBP/USD pair dropped to $1.6230. The head of the Bank of England, Mervin King, mentioned that the UK economic weakness would continue to be for a long period of time. The pound almost hit minimums of $1.6100.
The dollar retreated against major currencies amid growing futures on major US stock indices on Thursday. Risk appetites dropped.
Concerns about the fact that the Swiss National Bank would “substantially increase” liquidity reserves and increase depositsin order to prevent the national currency’s growth, caused increased pressure on theSwiss franc during both Asian and European sessions.
After the publication of the unemployment rate report inAustralia, which showed increase to the level of 5.1% in July versus the June level and expectations for 4.9%, the Australian Dollar fell against the US Dollar and the New Zealand dollar.
At the end of the week investors’ willingness to take risks grew, and the EUR/USD pair stabilized at the $1.42 level. The GBP/USD almost reached the $1.6300 maximums.
https://forex-metal.com/newsletters/240
Weekly technical analysis for 8 – 12.08
EURUSD
The pair couldn’t stay above 1.44835 and declining to the channel line at 1.41130. If this level is broken the pair will decline to Moving Averages (100 and 200) at 1.37441.
Resistance: 1.44835, 1.47697, 1.50676
Support: 1.41130, 1.37441, 1.33427
GBPUSD
The pair has risen to median line and Moving Average (200). The pair may roll back to 1.61154 before breaking the level.
Resistance: 1.64274, 1.68504, 1.72652
Support: 1.59962, 1.52523, 1.48532
USDCHF
The pair has broken 0.76882 and aiming to 0.73183.
Resistance: 0.76882, 0.79957, 0.82723
Support: 0.73183, 0.69837, 0.66177
USDJPY
The pair has broken 80.244 and aiming to 76.535.
Resistance: 80.244, 83.330, 86.836
Support: 76.535, 73.126, 69,117
AUDUSD
The pair has current support at 1.03847. The next level is at 1.01873.
Resistance: 1.05810, 1.07806, 1.09604, 1.11831
Support: 1.03847, 1.01873, 1.00031