Draghi sees signs of stabilization in the eurozones economy

ECB President Mario Draghi repeated yesterday that he sees signs of stabilization in the eurozones economy and financial markets at low levels, which is largely thanks to the ECB three-year loans.
EUR/USD
Range: 1.3334 – 1.3366
Support: 1.3305
Resistance: 1.3372

EUR/USD closed in New York at 1.3360, off traded highs at 1.3368 seen after the markets reacted to Fed Bernanke’s dovish comments concerning US unemployment. The rate basically flatlined through Asia with trade contained within a relatively tight range of 1.3343-1.3366. Early demand for euro-yen provided the move up to the overnight highs though momentum failed to take it through the NY top, with Japanese exporter EUR/YEN sales cited for pressing the rate back to the lows. US house prices and US consumer confidence provide the afternoon’s interest ahead of Fed speakers after the European close. Offers seen into 1.3370 with stops positioned through 1.3370-1.3380. A break to open a move toward 1.3400. Above here and the rate can extend toward 1.3415-1.3420. Support 1.3345-1.3340, a break exposes 1.3325-1.3320, ahead of 1.3300-1.3280.

GBP/USD
Range: 1.5944 – 1.5970
Support: 1.5950
Resistance: 1.5977

Cable closed in New York at 1.5966, off New York rally highs of 1.5974 seen after markets reacted to dovish comments from Fed’s Bernanke. The rate touched an early high in Asia of 1.5972, as early direction was dictated by strong French name euro-yen demand, but move held off the New York high as well as the reported option barrier at 1.5975. Decent sell interest seen in place from above 1.5970 and may extend toward the larger barrier at 1.6000. A break here expected to meet profit take sales on any initial move, a clear to take rate on to 1.6030-1.6050. Japanese exporter sales of euro-yen acted to press cable to overnight lows of 1.5957 with the rate continuing its consolidation of Monday’s move between 1.5960-1.5970 into Europe. Support seen back at 1.5957, with demand seen to 1.5950. A break here exposes stronger support at 1.5920.

Gold
Range: 1,686.79 – 1,691.95
Support: 1,655.70
Resistance: 1,700.00

Gold prices rallied sharply yesterday following Bernanke’s dovish comments which re-awakened QE3 fears and sent the dollar scuttling lower. Gold picking up from New York lows of 1,659.20 to 1,693.60, closing the day around 1,690 a gain of almost 45 on the day. Asian markets have treated yesterday’s rally with a bit of scepticism and have sidelined the metal in a very tight 1,686.60-1,690.90 range. Last night’s rally has brought back into focus the 200 and 100-day MA’s currently at 1686.95 and 1,688.60, with the New York close the first above the averages for a fortnight. Further closes above here should provide a bullish signal again with a break of 1,700 looking very possible and pointing to a revisit towards 1,717 initially before 1,726 seen. Initial support, below the 100/200-day MA’s, is at yesterday’s lows of 1,655.70 and 1,642.25.