Reform rush in Greece amp Italy for new appointed leaders

The New Greek and Italian leaders are busy forming governments on Monday, in a hurry to prevent the debt crisis from damaging their countries further.

GBP/USD

Range: 1.5873 – 1.5913

Support: 5875

Resistance 1.5915

Cable closed in New York at 1.5910, off traded lows of 1.5880. The rate was pulled lower by euro slippage through Monday’s session, trading down from Monday’s Asian highs of 1.6095 to that mentioned low. The risk off tone from Monday carried over into Asia, with the rate drifting off from early highs of 1.5914, through the New York low at 1.5880 to extend its corrective pullback to 1.5872. The rate recovered, trading around 1.5900 into early Europe. Support remains in the area between 1.5875-1.5865, the area covering recent lows at 1.5869. Next support seen close behind at 1.5855-1.5850, a break to open a deeper move towards 1.5835-1.5825. Resistance is now seen at 1.5915-1.5925, with a break to open a move towards 1.5950-1.5960.

EUR/USD

Range: 1.3576 – 1.3640

Support: 1.3550

Resistance: 1.3640

Euro-dollar closed in New York at 1.3630, off traded lows at 1.3591, giving back all of the gains made on the back of political developments in Greece and Italy. The rate squeezed lower in early Asia, meeting demand ahead of 1.3610 before recovering to mark session highs at 1.3641. Stiff resistance was noted between 1.3635-1.3650, though with the rate turning lower, drifting through the balance of the overnight session to retest the New York low, the rate was able to extend lows to 1.3584. The rate remained under pressure into early Europe, pressed down to challenge reported demand at 1.3580. Recovery efforts remain shallow and are seen keeping focus on the downside and the stronger support level at 1.3550. A break below will open a deeper move towards 1.3525-1.3515, followed by 1.3484. Resistance sat at 1.3640-1.3650.

Gold

Range: 1,766.52 – 1,782.82

Support: 1,761.00

Resistance: 1,786.80

Gold prices fell back yesterday as equities and oil, along with the euro, were hit on further EU worries over Greece and Italy, despite PM changes. The Dollar Index also marched higher, putting pressure on the metal. Gold opened the weak buoyed by the weekend risk on sentiment following Mr Berlusconi’s departure, but the move was short lived with an early high of 1,796.30, before profit taking set in with the metal falling back to 1,773.90 by midday. Rallies in the New York session were limited to 1,786.80, before falling back again to 1,776.25 and closing out the day at 1,780.30. Asian markets have since sold gold again to a low of 1,776.30.

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