Eurogroup has encouraged Spain to accelerate deficit cuts. Finance ministers from the eurozone have encouraged Spain to make extra efforts to bring its deficit down

<p>EUR/USD Range: 1.3149 – 1.3191 Support: 1.3150 Resistance: 1.3190 Euro-dollar closed in New York at 1.3154, having recovered Monday from a low of 1.3079 to […]</p>

EUR/USD
Range: 1.3149 – 1.3191
Support: 1.3150
Resistance: 1.3190

Euro-dollar closed in New York at 1.3154, having recovered Monday from a low of 1.3079 to 1.3159 on improved risk outlook. The rate dipped back to mark early lows in Asia at 1.3146 before pushing higher as risk was further boosted by the gains in equity markets, the eventual break of 1.3170 tripping stops which took rate on to a high of 1.3192. The rate drifted lower, meeting support at the broken resistance at 1.3170 before breaking below, the move extending back toward the earlier low before fresh demand emerged. Eurogroup approval for the next Greek aid package has turned attention toward Spain with pressure seen for them to reduce the budget deficit for 2012. Market will be on watch for comment from Ecofin. Offers seen at 1.3190-1.3200 stronger toward 1.3215. Support now at 1.3150-1.3140.

GBP/USD
Range: 1.5637 – 1.5660
Support: 1.5635
Resistance: 1.5690

Cable closed in New York at 1.5637 after the rate had been pressured to intraday lows of 1.5603 with recovery to 1.5646 through the rest of the session seen laboured as it trailed euro-dollar’s stronger correction. Rate recovered off the early Asia low, extending its recovery to 1.5662 as rate tracked an extended euro-dollar recovery. Cable found support between 1.5635-1.5640 on pullbacks, with the 1.5660-1.5665 area continuing to cap. Above here and further offers seen at 1.5674, a break to open a fresh test on stronger resistance area between 1.5690-1.5600. Support remains in place toward 1.5600, the failure to push below Monday sparking suggestions that the figure holds barrier interest. Interim support remains at 1.5640-1.5635.

Gold
Range: 1700.12 – 1,705.64
Support: 1,692.60
Resistance: 1,717.00

Gold prices continue to hover above the 1,700 psychological level as we nervously await the outcome of today’s one day FOMC meeting. Monday saw falls to 1,692.60, but the 200-day MA around 1,680.70 continues to add support on a closing basis and the metal ended the New York session around 1,701. Asia has been relatively subdued with gold trading a 1,698.45-1,705.80 range. Dips continue to be met by bargain hunters and the long term technical bull picture remains intact despite some short term damage recently. The rise this year of crude prices is another factor supporting gold. Support is seen at 1,692.60 and 1,680.70 with resistance at 1,717 and 1,726.20.

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