DAILY FOREX NEWS BY UBP, 05 03 2012

EXCHANGE RATES

Currency Support II Support I Level Resistance I Resistance II
EURUSD 1.2970 1.3020 1.3210 1.3320 1.3500
GBPUSD 1.5500 1.5650 1.5820 1.5950 1.6000
EURGBP 0.8150 0.8200 0.8330 0.8525 0.8650
USDCHF 0.8800 0.9080 0.9140 0.9250 0.9300
USDJPY 78.60 80.00 81.30 82.30 82.70
USDCAD 0.9780 0.9850 0.9900 1.0150 1.0280
EURCHF 1.2000 1.2030 1.2050 1.2250 1.2380
EURJPY 103.20 107.00 107.20 109.00 110.00
XAUUSD 1680 1690 1710 1740 1760
XAGUSD 33.00 33.75 34.66 35.80 37.50

EVENTS & MEETINGS

EU?s Barroso meets with Austria?s Faymann in Vienna. 11:15Gmt

VIEWS & TRADING IDEAS

EUR/USD

The Euro was under pressure Friday, breaking the 1.3300 support
area. A test of the 1.3000 is not to exclude from here. China cut 2010
growth target to 7.5% which weighted on the risky assets overnight. We
expect the pair to keep trading under pressure for the coming days as
long as we keep trading below the 1.3320 level.

GBP/USD

Cable finally broke the 1.5900 support area after spending a
couple of days above its 200 day moving average. Upside should be cap
by this level from now and downside should extend to the 1.5650 which
the February lows. Renewed downward pressure is expected for the next
sessions.

USD/CHF

The greenback was well bid on Friday and the 0.9070 resistance was
broken. This short term rally should extend to the 0.9250 area which
was the February resistance. Support to watch now is this 0.9070/80
area, we?ll remain short term bullish above this level.

USD/JPY

The pair printed a new high on Friday at 81.86 but was unable to
extend gains this morning as China cut growth forecast. Trend remains
clearly positive even though a test of the 80.00 support could well be
seen before seeing a new leg on the upside.

Commodities

Gold stabilised above the 1700'$ mark with good buying from the
physical side meeting short term players selling.
1675$ is rumoured to have central banks buying orders laying in
this zone and we will not wait until then but rather try to place our
bids on Wednesday?s lows near 1790$. The topside looks very much
limited near 1725/1730$ for now and the volume observed since the free
fall is down by two/third. The white metals are giving back the
previous gains on speculative selling and are also looking weak.

Foreks Haber Merkezi ( [email protected] )
http://www.foreks.com
http://twitter.com/#!/ForeksTurkey