Market focus today is on US non-farm payroll data, which will likely decide the next direction of risk
City Index February 3, 2012 1:00 PM
<p>EUR/USD Range: 1.3115 – 1.3155 Support: 1.3115 Resistance: 1.3187 Euro-dollar closed in New York at 1.3145, having settled mid-range after recovering off this session’s lows […]</p>
Range: 1.3115 – 1.3155
Euro-dollar closed in New York at 1.3145, having settled mid-range after recovering off this session’s lows of 1.3085 and pushing up to 1.3187. The rate eased lower into Asia, seen as a ‘normal’ Friday risk off Asian move, but given an added knock on release of weaker than forecast China services PMI. The rate recovered through the balance of the session, able to extend to 1.3152 before early Europe. A buy on dips seems to be the preferred course in pre US-employment report trade. Resistance seen into the 1.3187-1.3197 area of recent highs, offers remaining in place from 1.3200 through to 1.3220, a break to expose recent range highs at 1.3233-1.3235 ahead of 1.3250. Support seen into 1.3115-1.3100, ahead of 1.3085-1.3080 and then 1.3027.
Range: 1.5786 – 1.5841
Cable closed in New York at 1.5807, having recovered off pullback lows of 1.5795. The rate slipped lower into early Asian trade, with reported stops sub 1.5790 seen as an early attraction. The rate dipped to an extended low of 1.5786 before picking up fresh demand. The rate recovered through the balance of the session, stepping its way to an eventual high of 1.5825, with early Europe extending this move to 1.5832. Markets seen fairly subdued, experiencing usual pre-US employment report thin trading conditions. Resistance seen at the New York high of 1.5842, with sell interest suggested extending to 1.5859-1.5861. A break above this later area to open a move back to 1.5884, with stronger offers noted into 1.5890 and more towards 1.5900. Support at 1.5785-1.5775 ahead of 1.5750.
Range: 1,755.41 – 1,759.94
Gold continued to march higher yesterday despite some falls in oil prices and a marginally weaker euro-dollar. The metal posted fresh yearly highs of 1,761.20 after earlier lows of 1,741 and closed out the day at 1,759.50. Whilst appetite for the metal remains strong, particular in Asia, the market is nearing overbought levels and is becoming increasingly wary of a reversal lower. The move higher was pushed into overdrive by Fed Chairman Ben Bernanke following last week’s FOMC meeting where he pledged low interest rates in the US until 2014 and hinted at further QE. Asian markets this morning have seen the metal hover around the 1,755-60 range ahead of Europe. Support is now seen towards 1,741 and 1,732.75, with resistance at 1,767 and 1,779.50.
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