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We expect more dollar selling across the board as the signal for a successful vote on Greece

Article By: ,  Financial Analyst
June 29, 2011 11:39 AM
XAU/USD
Range: 1,501.00 – 1,505.90
Support: 1,495.00
Resistance: 1,511.00

Precious metals edged higher yesterday as crude oil prices firmed up. The dollar index slumped and equity markets rallied ahead of the first two votes on the Greek austerity package today. Rioting in Greece also added to some safe haven demand for gold and silver. Spot gold closed up at 1,501.35 after opening at 1,498.00, with silver rallying from 33.56 to close at 33.95. Asian markets have continued to shore up the metals, with gold moving up just short of yesterday’s intraday high of 1,506.40, and silver to 34.22. Support for gold is seen at yesterday’s low of 1,495.80 and 1,490.80 with resistance at 1,511.00 and 1525.80. Silver has support at 33.52 and 33.38, with resistance at 35.59 and 36.35.

EUR/USD
Range: 1.4339 – 1.43910
Support: 1.4310
Resistance: 1.4400
Euro-dollar closed in New York at 1.4372. The rate was seen driven higher in Asia on the back of ECB’s Jean-Claude Trichet’s reiteration that the ECB is in strong vigilance mode, suggesting gold sales for euro as well as forecasts that today’s Greek austerity vote will pass. Euro-dollar basically consolidated the New York rally through the Asian session and a fairly subdued Asian afternoon. The rate edged towards the earlier high ahead of the European open, with further demand into Europe lifting the rate on to 1.4381. Offers place on approach to 1.4400. Anything above will open a move towards 1.4430, ahead of stronger interest placed between 1.4450.
GBP/USD 
Range: 1.5985 – 1.6012
Support: 1.5910
Resistance 1.6050

Sterling closed in New York at 1.5995. The rate through the overnight Asian session was confined to a 1.5980 – 1.6010 range. Euro-sterling was confined overnight between 0.8970 and 0.8984 as it too consolidated Tuesday’s gains. The move towards the month end should bring talks of European sovereign demand as we look for a break above 0.9000 which, if it occurs, would place a counter to any cable rally attempt. Cable offers remain at 1.6010. A break opens a move towards 1.6030, ahead of a stronger area between 1.6045/55. Stops are noted above 1.6060, a break to open a move toward 1.6075/80. Support at 1.5980 ahead of 1.5960/50 and 1.5943

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