Market review for 10 – 14. 10, 2011
Previous trading week demonstrated a considerable strengthening of the euro. One of the reasons for this rally on the first day of the week was based on the fact that France and Germany announced of the reached consensus in terms of providing support to the European banks. The maximum level has been reached at the $1.36989 mark by the EUR/USD pair on Monday. Meanwhile the US Dollar dropped against its main competitors against the background of the main stock indices stabilization. The sterling showed a rapid growth on Monday as well as the euro. The GBP/USD pair reached the $1.5663 during the Asian session, and the European maximum has been reached already at the $1.5892 mark.
The euro dropped on Tuesday in the threshold of the voting at the Slovakian Parliament regarding the European Financial Support Fund expansion. As a result, the euro decreased and the EUR/USD pair temporarily dropped to the $1.3574 minimums. Due to the fact that the European summit has been postponed,the US dollar strengthened against the major currencies against the background of the decreased stock markets.
The released on the same day Business Conditions index from the National Bank of Australia happened to be positive, while its previous level was negative. Therefore, the Australian dollar managed to reach parity with the greenback again.
During the European session on Wednesday the EUR/USD pair showed increase up to the $1,3800 level. Released Euro-zone fundamentals supported the rapid growth of the euro. The industrial production figure turned out to be above the forecast (5.3% against the expected 2.1%). The EUR/USD maximums were reached at the $1.3815 mark. TheUS dollar lost its previously won positions as the demand for the save-heaven currencies decreased. Greenback weakened against its major competitors in the threshold of the FOMC meeting minutes publication as well.
The USD/JPY pair traded around the Y76.70 mark. Its maximum has been reached at the Y77.47 level.
After the euro’s rapid growth on Wednesday, associated with the fact that Slovak political parties agreed to approve the extension of the stabilization fund EFSF, the Euro consolidated near the $1.38 level during the first part of Asian trading session on Thursday. After the published German GDP forecast, which showed a decrease to 0.8% in 2012 versus its growth in 2011 to 2%, the Euro currency fell to $1.370 zone and had recorded its daily low at $1.3685 mark.
The Australian Dollar grew against the greenback after the Australian unemployment report which showed the 5.2% against the forecasted 5.3% in September.
The strengthening of the US Dollar held in control the demand for the precious metals as alternative assets, therefore the Gold fell on Thursday and hit the lows of $1652 per ounce before the beginning of the American trade session.
At the end of the week the GBP/USD managed to strengthen above the $1.58 level, and the USD/JPY closed the week above the Y77 mark.
Weekly technical analysis for 17 – 21. 10
EURUSD
The pair has risen to Moving Average (100) 1.38517.
Resistance: 1.41130, 1.44835, 1.47697
Support: 1.37441, 1.33427, 1.28800
GBPUSD
The pair may try to reach Moving Average (100) at 1.59962.
Resistance: 1.59962, 1.64274, 1.68504
Support: 1.52523, 1.48532, 1.43344
USDCHF
The pair is trading between two Fibonacci levels of 50% 0.93264 and 38% 0.88022.
Resistance: 0.91074, 0.93264, 0.96597
Support: 0.88022, 0.85633, 0.82723
USDJPY
The pair has declined to support level at 76.535 and if the pair stays below this level the pair will decline to 73.126.
Resistance: 80.244, 83.330, 86.836
Support: 76.535, 73.126, 69,117
AUDUSD
The pair’s resistance is 1.03847, the pair’s support is 1.01873.
Resistance: 1.03847, 1.05810, 1.07806
Support: 1.01873, 1.00031, 0.97889