Euro lost ground in Asia as Standard & Poor’s announcement of a downgrade of Italy to “outlook negative”

<p>EUR/USD Range: 1.3594 – 1.3647 Support: 1.3585 Resistance: 1.3690 Euro-dollar closed in NY at 1.3688 after easing back from its recovery highs of 1.3721, having […]</p>

EURUSD
EUR/USD
Range: 1.3594 – 1.3647
Support: 1.3585
Resistance: 1.3690
Euro-dollar closed in NY at 1.3688 after easing back from its recovery highs of 1.3721, having seen lows during the session of 1.3586. Rate came under fresh pressure into the early Asian dealing as market reacted downgrade of Italy, the rate dropping from 1.3688 to 1.3605. Bids were encountered ahead of 1.3600, allowing rate to recover to 1.3645, aided in part by the positive reaction to the RBA Minutes. Although the rate failed to push above 1.3650 which took the rate back through to 1.3600 to extend lows to 1.3593. Rate recovered, meeting resistance around the 1.3620 level. Support now seen at 1.3585 which resistance touching at 1.3690.
GBPUSD
GBP/USD
Range: 1.5659 – 1.5685
Support: 1.5655
Resistance: 1.5685
Cable closed in NY at 1.5700, the rate having recovered off NY lows of 1.5632 before easing back from recovery highs of 1.5724. Rate came under pressure into early Asia as it tracked euro-dollar’s reaction to the S&P downgrading of Italy, the rate dropping to a low of 1.5655 before meeting demand interest which provided some buoyancy. After settling into a tighter 1.5655/85 range through the balance of the overnight session, opening into Europe around 1.5670. Bids now in place at 1.5655, a break to open a deeper move toward 1.5632. Stops now seen placed below 1.5630, a deeper move toward 1.5600 ahead of stronger support level of 1.5585/80. Resistance 1.5680/85 ahead of 1.5700.
Gold
Range: 1,772.17 – 1,785.65
Support:1,762.80
Resistance: 1.786.00
Gold continues to whip around at the mercy of the dollar Index and crude prices, with $50 moves now seemingly the norm in nervous markets. The metal opened around 1,812.50 yesterday with an early rally in Asia to 1,828.00 but the move was short lived with Europe sending Gold prices back to opening levels, and NY selling the metal hard as the dollar bounced broadly in the afternoon and crude prices fell sharply. Gold hit lows of around1,770.45 just after London closed before a weak rally to 1778.80 into the close. Asian markets saw a brief rally to 1,786.00, before further pressure resumed and the metal fell to 1,770.00. Support is at 1,762.80 and 1723.50 with resistance now seen at 1,786.00 and 1,827.00.
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