Daily Report for 4th May 2012

EURUSD: Support 1.3060 – 1.3110 Pivot: 1.3144 Resistance: 1.3190 – 1.3230 Euro: The U.S. dollar remained broadly higher against its major counterparts on Thursday, as mixed U.S. economic reports and sustained concerns over the handling of the euro zone’s financial crisis weighed on demand for riskier assets. the bank left its benchmark interest rate unchanged at 1%, in a widely expected decision.. The pair was likely to test support at 1.3105, the low on April 23, and resistance at 1.3284, the high of May 1. Sustain trading below 1.3130 will indicate stop term top is placed and will bring to 1.3085 and 1.3050$ support level. Stochastic has drifted from overbought zone and is trading around 50% where turning towards oversold zone indicating short correction in the price to continue. GBPUSD: Support 1.6130 – 1.6165 Pivot: 1.6190 Resistance: 1.6220 – 1.6250 Pound: The British Pound was higher against the U.S. Dollar on Friday. GBP/USD was trading at 1.6186, up 0.06% at time of writing. The pair was likely to find support at 1.6160, Thursday’s low, and resistance at 1.6302, Monday’s high.It is taking support at 1.6180 which is 10 DEMA and trading below the same on closing basis will open the door for 1.6110 to 1.6060 levels where 1.6240 will be resistance level. Stochastic has drifted from the overbought zone and has given negative intersection and trading below 50% moving towards lower zone where correction will continue till the time resistance of 1.6300 holds. AUDUSD: Support 1.0200 – 1.0230 Pivot: 1.0275 Resistance: 1.0310 – 1.0350 The dollar strengthened against most major currencies on Thursday mainly due to weak manufacturing data out of Europe. AUD/USD tested the lower support level of 1.0240 and closing was just above the support level and crossover below the same will confirm the down trend to continue. Once the support is crossed on lower side target of 1.0100 to 1.0020 will be the immediate support level to be tested. Lower side 1.0020 is a strong support and after consolidation over there where some profit booking may be seen. We are looking at the bear flag pattern breakdown where the difference of the Pole is 600 points and expected breakdown target will be 0.9600 to 0.9550 levels. Stochastic are trading just below 30% zone with negative intersection and is moving towards over sold zone where some downside move is expected. Gold: Support: 1618 – 1627 Pivot: 1640 Resistance: 1650 – 1663 Gold futures added to losses during early U.S. morning trade on Thursday, after official data showed that the number of people who filed for unemployment assistance in the U.S. last week fell by the most since May 2011. Gold traded at a low of USD1,630 after opening was seen below the level of 1650 a troy ounce during the session. After breaching the support of 1645 confirmation of the down side was seen and today support is seen at yesterday low of 1630$ and sustain trading below the same will bring to 1622$ and 1615$ in near term. Stochastic are trading below 50% area and is moving towards oversold zone where further selling in price may be expected to continue. Silver: Support: 29.44 – 29.8 Pivot: 30.23 Resistance: 30.6 – 31.05 Silver which reverted from the level of 31.42 where resistance was respected at 31.5$ and is trading near the support of 30$ and sustain trading below 30$ will confirm the down trend where will continue in pattern breakdown moving to test 25A$ level. Sustain trading below 29.8$ yesterday low will continue for 29.2 – 28.8$ immediately where further 27.5$ and 25$ will be the medium term target. As it’s a rule after the breakdown short recovery was expected and this rise can be the selling opportunity where selling is seen from 31.2 – 31.5 range. From current level we will continue the bearish view if trading is seen below 29.8$ where before breaking the same short bounce till 30.25 will be the fresh sell opportunity. Stochastic are trading in just above oversold zoen where trading below 29.8$ will continue downtrend Crude: Support: 100.5 – 101.5 Pivot: 103.45 Resistance: 104.5 – 106.4 Crude: Crude oil futures came under heavy selling pressure during U.S. morning trade on Thursday, after European Central Bank president Mario Draghi refrained from pledging more liquidity-boosting measures and said the economic outlook in the region was subject to “downside risks”. There are worries that the region’s sovereign debt crisis could trigger a broader economic slowdown that would curb demand for oil. Crossover below 102.2$ will brings to 101.5 – 100.5$ levels and may go further down, where as failing to cross the same and trading above 104 will retest 107$ level. Stochastic are trading below 80% zone and is negative expecting down side move to continue.