IN THIS ISSUE:
Weekly market review from Forex-Metal.
Weekly technical analysis.
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Weekly review for 16 - 20. 07.12
Euro:
On Monday The Euro fell below 1.22 level against the dollar after German Chancellor Angela Merkel said that she is not going to change her position in regard of easing the conditions for the five EU countries that have requested international financial assistance. There were some news that supported the currency this day. The Euro rose on the background of weakening of the dollar due to the negative results of published today report on Retail Sales. Also, the support for the euro had earlier statistics on Euro-Zone Trade Balance s.a., which rose in May to 6.3 billion Euros from the revised April rate of 4.5 billion Euros and analysts forecasts of 5.0 billion Euros. On Tuesday, the Euro currency declined after the publication of the sentiment index in the business environment. In details, the result recorded a drop in July to -19.6 compared -16.9 in June but was better than forecasted value of -20. The rating agency Fitch on Thursday affirmed Italy's "A-" rating with negative outlook. The German Parliament with majority of 473 votes approved the finance assistance to Spain. The France successfully placed 3types of its bonds for 8.96 billion Euros, where the average yield of 5- year securities fell to a record low of 0.86% per annum against 1.43% in June. However, on Friday the currency went down again. By the end of the week the EUR / USD pair was traded with a decrease of 0.45%.
US Dollar:
The dollar fell sharply on Monday after the release of disappointing results of the U.S. Advance Retail Sales. The Retail sales which were falling already for the third consecutive month decreased by 0.5 %, an amount of 401.5 billion dollars. Analysts had expected growth of sales in June up to 0.2 % compared with May. As the result, the greenback dropped steeply against its competitors on the background of reinforced speculation that the Fed will take further steps to strengthen economy. Also, the statement of the Federal Reserve of Kansas City Mr. Esther George on Tuesday, who said that the U.S. economy probably will not grow much faster than 2 % this year, added a bit of negative for the dollar trading dynamics.The words of Chairman, Mr. Bernanke who said that the risks for the economy have increased, and the statement that "the Fed is ready to take action if necessary" as well as “the recovery of the labor market is extremely slow” told for many market participants that the Fed is ready to take an action for supporting the growth of the economy. The first reaction of market participants was negative, because no specific signal on the new incentives for the U.S. economy was announced. During the Wednesday’s American session, on the background of the second speech of the Fed Chairman Ben Bernanke in Congress the dollar weakened its position against its competitors. Mr. Bernanke refrained again, by repeating a speech of the day before, from giving any details about the new round of quantitative easing program. The demand for the currency was weak during the Thursday sessions due to the publication of the report of U.S. Initial Jobless Claims the result of which recorded a negative growth by 34K by a week ending on July 14. The Friday’s trading session showed again positive interest of investors for the American currency anв the greenback strengthened its position against almost all its competitors.
British Pound:
The pound changed his previous downtrend on Monday where it was declining against almost all its competitors. The Bank of England decided to keep its key interest rate at a record low of 0.5 % this month. The pound fell after the Bank’s announcement due to the statements of representatives who said that there is a possibility of future rate reductions. The fact of injecting more cash into the UK economy and stimulate lending along with slowing of inflation in country lead seven members of Bank of England to vote for increasing asset purchase program by 50 billion pounds to 375 billion pounds. The GBP / USD pair has rapidly declined and reached the low of today, the level of 1.5581. However, this news had not provided any further pressure on currency and the Pound by the end of the week recorded some strength against the dollar as well as against many other competitors.
Japanese Yen:
The fact that the Minister of Finance of Japan, Mr. Azumi confirmed again the readiness of the Japanese officials to take decisive actions for weakening the national currency sent the USD / JPY pair to the 79.15 level. The Tuesday’s growth of the pair covered many of the pair’s losses which were occurred after three days of falling the dollar against the Yen where many of market participants earned speculatively, regardless the current situation, their capital. The USD / JPY pair continued its previous downtrend and dropped to the lows of Y77.62 the low of this week. The currency rose against all major currencies due to the factors which were supported the Japanese currency as an asset with the safe haven status. Some of them were: still existed concerns of slow economic recovery and protracted decision-making process of taking actions by European leaders for resolving the debt crisis in the region.
Australian Dollar:
The Australian dollar rose against the background of the Asian stock indices as well as on publication of the minutes of the Reserve Bank of Australia.
Weekly technical analysis for 23 - 27.07, 2012
EURUSD
The pair’s strong support maybe found at Fibonacci 50% level at 1.20280.
Resistance: 1.25667, 1.28800, 1.33427
Support: 1.20280, 1.17063, 1.14010
GBPUSD
The pair’s resistance is 1.59962. Support is at Fibonacci 23% 1.52523. The pair may try to test Moving Average (100) at 1.58790.
Resistance: 1.59962, 1.64274, 1.68504
Support: 1.52523, 1.48532, 1.43344
USDCHF
The pair may rise to Moving Average (200) at 0.99031. Higher is a channel line at 1.01369. MACD divergence warns the possible corrections. The pair may rise to channel line before corrections start.
Resistance: 0.99031, 1.01369, 1.04060
Support: 0.96597, 0.93264, 0.91074
USDJPY
The pair is staying below 80.244. The pair may decline to 78.031, next aim is at 76.535.
Resistance: 80.244, 83.330, 86.836
Support: 76.535, 73.126, 69.117
AUDUSD
The pair is testing upper median line at 1.03847.
Resistance: 1.03847, 1.05810, 1.07806
Support: 1.01873, 1.00592, 0.97889
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For more details please contact our Business Development team at business@forex-metal.com or talk to our operators via live chat and they will put you to the right person.
Weekly market review from Forex-Metal.
Weekly technical analysis.
Get a 35% trading bonus when you open a new account.
Representatives Wanted!
Weekly review for 16 - 20. 07.12
Euro:
On Monday The Euro fell below 1.22 level against the dollar after German Chancellor Angela Merkel said that she is not going to change her position in regard of easing the conditions for the five EU countries that have requested international financial assistance. There were some news that supported the currency this day. The Euro rose on the background of weakening of the dollar due to the negative results of published today report on Retail Sales. Also, the support for the euro had earlier statistics on Euro-Zone Trade Balance s.a., which rose in May to 6.3 billion Euros from the revised April rate of 4.5 billion Euros and analysts forecasts of 5.0 billion Euros. On Tuesday, the Euro currency declined after the publication of the sentiment index in the business environment. In details, the result recorded a drop in July to -19.6 compared -16.9 in June but was better than forecasted value of -20. The rating agency Fitch on Thursday affirmed Italy's "A-" rating with negative outlook. The German Parliament with majority of 473 votes approved the finance assistance to Spain. The France successfully placed 3types of its bonds for 8.96 billion Euros, where the average yield of 5- year securities fell to a record low of 0.86% per annum against 1.43% in June. However, on Friday the currency went down again. By the end of the week the EUR / USD pair was traded with a decrease of 0.45%.
US Dollar:
The dollar fell sharply on Monday after the release of disappointing results of the U.S. Advance Retail Sales. The Retail sales which were falling already for the third consecutive month decreased by 0.5 %, an amount of 401.5 billion dollars. Analysts had expected growth of sales in June up to 0.2 % compared with May. As the result, the greenback dropped steeply against its competitors on the background of reinforced speculation that the Fed will take further steps to strengthen economy. Also, the statement of the Federal Reserve of Kansas City Mr. Esther George on Tuesday, who said that the U.S. economy probably will not grow much faster than 2 % this year, added a bit of negative for the dollar trading dynamics.The words of Chairman, Mr. Bernanke who said that the risks for the economy have increased, and the statement that "the Fed is ready to take action if necessary" as well as “the recovery of the labor market is extremely slow” told for many market participants that the Fed is ready to take an action for supporting the growth of the economy. The first reaction of market participants was negative, because no specific signal on the new incentives for the U.S. economy was announced. During the Wednesday’s American session, on the background of the second speech of the Fed Chairman Ben Bernanke in Congress the dollar weakened its position against its competitors. Mr. Bernanke refrained again, by repeating a speech of the day before, from giving any details about the new round of quantitative easing program. The demand for the currency was weak during the Thursday sessions due to the publication of the report of U.S. Initial Jobless Claims the result of which recorded a negative growth by 34K by a week ending on July 14. The Friday’s trading session showed again positive interest of investors for the American currency anв the greenback strengthened its position against almost all its competitors.
British Pound:
The pound changed his previous downtrend on Monday where it was declining against almost all its competitors. The Bank of England decided to keep its key interest rate at a record low of 0.5 % this month. The pound fell after the Bank’s announcement due to the statements of representatives who said that there is a possibility of future rate reductions. The fact of injecting more cash into the UK economy and stimulate lending along with slowing of inflation in country lead seven members of Bank of England to vote for increasing asset purchase program by 50 billion pounds to 375 billion pounds. The GBP / USD pair has rapidly declined and reached the low of today, the level of 1.5581. However, this news had not provided any further pressure on currency and the Pound by the end of the week recorded some strength against the dollar as well as against many other competitors.
Japanese Yen:
The fact that the Minister of Finance of Japan, Mr. Azumi confirmed again the readiness of the Japanese officials to take decisive actions for weakening the national currency sent the USD / JPY pair to the 79.15 level. The Tuesday’s growth of the pair covered many of the pair’s losses which were occurred after three days of falling the dollar against the Yen where many of market participants earned speculatively, regardless the current situation, their capital. The USD / JPY pair continued its previous downtrend and dropped to the lows of Y77.62 the low of this week. The currency rose against all major currencies due to the factors which were supported the Japanese currency as an asset with the safe haven status. Some of them were: still existed concerns of slow economic recovery and protracted decision-making process of taking actions by European leaders for resolving the debt crisis in the region.
Australian Dollar:
The Australian dollar rose against the background of the Asian stock indices as well as on publication of the minutes of the Reserve Bank of Australia.
Weekly technical analysis for 23 - 27.07, 2012
EURUSD
The pair’s strong support maybe found at Fibonacci 50% level at 1.20280.
Resistance: 1.25667, 1.28800, 1.33427
Support: 1.20280, 1.17063, 1.14010
GBPUSD
The pair’s resistance is 1.59962. Support is at Fibonacci 23% 1.52523. The pair may try to test Moving Average (100) at 1.58790.
Resistance: 1.59962, 1.64274, 1.68504
Support: 1.52523, 1.48532, 1.43344
USDCHF
The pair may rise to Moving Average (200) at 0.99031. Higher is a channel line at 1.01369. MACD divergence warns the possible corrections. The pair may rise to channel line before corrections start.
Resistance: 0.99031, 1.01369, 1.04060
Support: 0.96597, 0.93264, 0.91074
USDJPY
The pair is staying below 80.244. The pair may decline to 78.031, next aim is at 76.535.
Resistance: 80.244, 83.330, 86.836
Support: 76.535, 73.126, 69.117
AUDUSD
The pair is testing upper median line at 1.03847.
Resistance: 1.03847, 1.05810, 1.07806
Support: 1.01873, 1.00592, 0.97889
35% TRADING BONUS IS ON AGAIN!
Get a cash bonus of up to $15000 when you deposit funds into your account for the first time.
The full bonus conditions are available here: https://forex-metal.com/discount/bonus35
If you have just opened a trading account with us and fund it, you can receive a cash bonus in addition to your deposit.
If you would like to receive the bonus, please contact us at payments@forex-metal.com and confirm that you would like to receive the bonus, at the time your account is being funded.
REPRESENTATIVES WANTED!
We are expanding our operations and would like to open a representative office in your country, so we can be closer to our customers. If you feel that you are up to it: to have an interesting business and to have a steady income, then talk to us. You do not need to have any special knowledge - full training and support will be provided by us.
For more details please contact our Business Development team at business@forex-metal.com or talk to our operators via live chat and they will put you to the right person.