The eurogroup meeting today is to decide on the next Greek bailout, with reported comment from this to be in focus, seen as the main interest in a data light day
City Index March 12, 2012 12:00 PM
<p>EUR/USD Range: 1.3079 – 1.3121 Support: 1.3100 Resistance: 1.3125 Euro-dollar closed in New York at 1.3115 after seeing lows in this session of 1.3096 following […]</p>
Range: 1.3079 – 1.3121
Euro-dollar closed in New York at 1.3115 after seeing lows in this session of 1.3096 following a ‘buy the rumour, sell the fact’ reaction to the Greek PSI agreement, with the move lower extended by the release of strong US payroll numbers. The rate was marked down to 1.3102 into early Asian dealing as markets reacted to the weekend release of China’s trade data, which showed a larger than expected deficit. The early dip met decent demand sitting ahead of 1.3100 which reversed the rate up to 1.3125, only to meet model and macro fund supply interest which capped, and with the addition of euro-yen sales took the rate through 1.3100 to a session low of 1.3085. Heavy tone remained into Europe with fresh sales extending the corrective pullback to 1.3080. Bids are noted at 1.3100, with stops placed on a break below, with strong demand sitting lower down at 1.3050-1.3040. Resistance remains at 1.3125.
Range: 1.5657 – 1.5690
Cable closed in New York at 1.5678, off session lows of 1.5662. The rate was held within a tight range through Asia, trade contained by 1.5658-1.5675, while euro-sterling initially edged to overnight highs of 0.8375, from an opening level around 0.8362, before squeezing down to 0.8355 as it tracked euro-dollar slippage ahead of the European open. The cross holds back above 0.8360 into Europe, while cable extends its recovery highs to 1.5684 on early profit take demand, though moves are viewed as shallow and seen keeping the underlying corrective tone in place. Support seen placed between 1.5660-1.5640, a break to expose stops, which if triggered to open a deeper move toward 1.5625-1.5620 ahead of stronger interest into 1.5600. Resistance noted at 1.5700, a break to open a move toward 1.5715 with talk of sell interest placed between 1.5730-1.5750.
Range: 1,702.64 – 1,713.65
Gold prices have drifted off in Asia and in tandem with the euro-dollar following China’s weaker trade deficit release over the weekend. The week opened with prices at 1,713.90, and after a brief high of 1,716.90 the metal has slipped back to 1,702.50 with equities softening through Asia. Friday saw the metal fall briefly through the 200 day MA at 1,680 to lows of 1,676.70, following the strong NFP release, but recovered strongly back through 1,700 later. Initial support now at 1,696.40 (100-day MA) and at 1,680 with a deeper move towards 1663.54. Resistance is noted up at 1,716 and 1,727.60, a move higher takes us to 1,739.94.
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