Market review for 20.11.12: The Bank of Japan decided to keep the volume of purchases of assets on the same 66 trillion Yen level.
Asian and European trading sessions:
Euro: The Moody’s credit rating yesterday, downgraded the credit rating of France to Aa1 from previous Aaa. However, the French Finance Minister expressed his disagreement with the actions of the agency, stating that the review does not reflect the current state of the fundamentals and does not take into account the current reforms undertaken by the Government. The EUR / USD pair fell to $ 1.2764 during the Asian session. The euro was able to recover on the background of today’s meeting of finance ministers of the region about providing of aid to Greece. The important report of today informed that the annual rate of PPI of Germany in October registered a growth of 1.5% against 1.7% in August and forecasts of 1.7%. Also, Spain was able to attract the E4, 938 billion from planned E3, 5-4, 5 billion at the auction for Treasury securities. A Yield of 12-month securities fell to 2.797% from the previous 2.823%. Supported the currency today the statements of the ECB representative Mr. Cara who said that the financial markets have stabilized significantly since July, but the situation in the euro area as a whole is similar to the situation in Japan in the 90’s.The EUR / USD pair set a high at $ 1.2821 during the European session.
Japanese Yen: The Bank of Japan after its two-day’s meeting decided to keep the volume of purchases of assets of 66 trillion yen (812 billion $). The currency was held in the range during the Asian session yet weakened to the following one. The USD / JPY pair moved up to Y81.54 level during the European session on background of today’s decision of the Bank of Japan to refrain from increasing the incentive programs.
American trading session:
U.S. Dollar: The dollar showed some strength and rose against most of the 16 most traded currencies as Federal Reserve Chairman Ben Bernanke warned that the U.S. economy could fall into recession, in case, if lawmakers would not decide on the so-called “fiscal cliff” problem.
Canadian dollar: The Canadian dollar fell against most currencies on speculations about situation at the Middle East which caused the decline in oil prices from their monthly highs. Also, the currency was negatively affected by the published data, which showed that the volume of wholesale sales fell in September by 1.4 % to 48.8 billion Canadian dollars, registering the fastest rate of decline over the past 19 months.
Silver: The December Silver futures prices traded in range $32.23-85 per troy ounce during the day.
Gold: After yesterday’s fast upward move, the price of gold stabilized in the range of $ 1729 – $ 1735 per ounce today, however, could not keep these levels and fell to $1721.90 per ounce on the COMEX.
Oil: The Egyptian President Mohammed Mursi said that the efforts on stopping the fighting between Israel and Palestinian factions in the Gaza Strip will be shown up very soon. Meanwhile, the January futures price of WTI retreated from month high and fell to 86.20 dollars a barrel on the NYMEX.
Technical analysis for 21.11
EURUSD
The pair has tested the Moving Average (200 and rolling back to 1.26897).
Resistance: 1.28630, 1.30277, 1.31674
Support: 1.26897, 1.25690, 1.23907
GBPUSD
The pair has tested Moving Average (500) 1.59142 and rolling back to 1.58543.
Resistance: 1.60322, 1.62050, 1.63316
Support: 1.58543, 1.56722, 1.54842
USDCHF
The pair has found support at 0.93949 and rolling back to 0.95074.
Resistance: 0.95074, 0.96220, 0.97427
Support: 0.93949, 0.93069, 0.92026
USDJPY
The pair has risen to the Resistance 81.399 and aiming to 82.219.
Resistance: 82.219, 83.065, 83.933
Support: 81.399, 80.438, 79.707
AUDUSD
The pair couldn’t break 1.04407 and rolling back to 1.03535. If the pair breaks this level the pair will decline to 1.02558.
Resistance: 1.04407, 1.05332, 1.06164
Support: 1.03535, 1.02558, 1.01744