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ANALYSIS

Daily Forex Market Analysis - 07 November 2012

With US elections behind us and Obama set for the second term, the market will experience volatility for the next 24 hours. The visible movement after Obama victory was seen in Gold and EUR/USD. US Stocks, however, experienced sharp slippage.

Euro is under pressure with Greece unresolved. EUR/USD is well supported since US elections began with more Obama leading to more FED easing.

GBP/USD is extremely volatile with major below 1.6000. The pair will follow EUR/USD while EUR/GBP has stopped at 0.8000.

Pay attention to German Industrial Orders forecast at -0.5% m/m.

USD/JPY experienced gains during US session, but since Obama’s presidential victory the pair is experiencing heavy selling.

EUR/JPY also experiences volatile falling to 102.30 and back to 103 during Asian session.

AUD the RBA held at 3.25% in a shock to the market where most economists had forecasted a 0.25% rate cut. The RBA statement gave reasons for them holding including a soft landing for China and higher than forecast inflation.

Pay close attention to October Asutralian Unemployment rate forecast at 5.5% again previous 5.4%.

Pairs to watch

USD/JPY Can the Y80 level hold?

XAU/USD uptrend to resume if Obama wins?

TECHNICAL COMMENTARY

Currency

Sup 2

Sup 1

Spot

Res 1

Res 2

EUR/USD

1.2700

1.2765

1.2865

1.2901

1.2950

USD/JPY

79.78

79.98

80.10

80.57

81.00

GBP/USD

1.5923

1.5951

1.6030

1.6039

1.6100

AUD/USD

1.0331

1.0410

1.0460

1.0474

1.0519

XAU/USD

1655.00

1673

1723

1733

1755

OIL/USD

85.00

88.00

88.40

89.00

90.00