The Eurogroup/ECONFIN meeting will be the focal point for Europe

<p>The Eurogroup/ECONFIN meeting will be the focal point for Europe, with US Treasury Secretary Geithner set to push his idea of leveraging the Eurozone’s bailout […]</p>

The Eurogroup/ECONFIN meeting will be the focal point for Europe, with US Treasury Secretary Geithner set to push his idea of leveraging the Eurozone’s bailout fund (EFSF) to make it more effective. 

EURUSD
EUR/USD
Range: 1.3832 – 1.3881
Support: 1.3825
Resistance: 1.3894
Euro-dollar closed in NY at 1.3875, the rate extended the recovery move into early Asia, the rate edging up to post session highs at 1.38939. Rate reversed off highs as attention turned toward the action in dollar-Asia, the demand for dollars in these pairs taking euro-dollar down to session lows of 1.3837, before meeting demand, with decent demand placed at 1.3840 after rate recovered to 1.3875. Trade in Asia was described as fairly subdued with attention turning toward today’s ECOFIN meeting, with US Treasury Secretary Geithner in attendance. Bids remain in place at 1.3840, more at the NY pullback low at 1.3825, with a break of 1.3820 to open a deeper pullback toward 1.3780. Resistance seen at 1.3894 to 1.3900, a break of 1.3910 to expose 1.3937. Offers seen at 1.3940 with stops above.
GBPUSD
GBP/USD
Range: 1.5782 – 1.5816
Support: 1.5708
Resistance: 1.5815
Sterling closed in NY at 1.5800, the rate drifted lower in early Asia before meeting decent demand interest placed into 1.5780, the demand providing a base from which rate recovered to a session high of 1.5811 ahead of the European open. It was noted Thursday that cable struggled to take full advantage of the positive reaction to the dollar funding announcement, in turn allowing euro-sterling to extend its recovery to 0.8790 in NY, with rate consolidating this move through Asia, with trade contained 0.8766/89. Offers seen in place between 1.5815/25, a break to open a move toward 1.5850, a break to expose resistance area between 1.5870/85. Bids placed at 1.5708 and 1.5665.
Gold
Range: 1,763.10 – 1,785.95
Support:1,750.00
Resistance: 1,791.00
Gold fell sharply from early highs of around 1,826.60 through Tuesday’s lows of 1,795 to 1,772.85. Some technical corrections were also behind the move, but bargain hunters re- emerged towards the lows prompting a recovery to 1,788.60 at the close. Asian markets however have followed the US price action with the metal slipping this morning from early highs of 1,791.25 to 1,762.80. Nearby support is now envisaged towards 1,750.00 and 1,725.00 where recent talk has been of some Chinese demand. Resistance now comes in at 1,791.00 and 1,826.60.

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