Daily Market Review 28 of May
The European debt crisis continued to dominate the markets last week as the Euro slashed, yet again, to its lowest level in 2 years and to record its biggest weekly fall this year.

On Friday, The Spanish region-Catalonia asked for an emergency founding from  Spain's government as they can’t face the 17 billions $ in debt they have to refinance this year.

Ratings agency Standard & Poor’s cut the ratings on five Spanish banks on Friday and said it believes the country is entering a double-dip recession. On Saturday, Bankia, the 4th largest bank in Spain asked for an emergency founding estimated by 30B$ much more than the 19B$ the market anticipated.

It wasn’t all bad from Europe, weekend polls surveys in the upcoming 17th June Greek election suggests pro-austerity parties in Greece have taken again the upper-hand, regaining the lead to form a government aiming in keeping the country as a member of the euro zone area.

Going forward, Even though Europe will continue to dominant the markets, from Wednesday the center of attention will shift to the US where the US Non Farm payrolls, ISM Manufacturing, Q2 GDP Second reading and more will be published.

Today, the US markets will be closed due to Memorial Day, They will regain trading on Tuesday.

The technical side:

EUR/USD Euro strength seems to returned as the currency has seemingly found support around the may 25th low of 1.2495. This has shifted attention to resistance barriers at 1.2620. A daily close above this level would be enough impetus for a move higher to the May 18th session high of 1.2793.

Support levels: 1.2550 1.2515 1.2465

Resistance levels: 1.2580 1.2620 1.2650

Gold Although gold’s appeal as a safe haven is boosted during times of economic uncertainty, the euro zone’s debt crisis has done little to bolster appetite for the precious metal in recent months.
A weakening euro and stronger dollar have weighed on gold instead, as the precious metal has been moving in tandem with riskier assets since hitting a record high of USD1,920 last September.

The gold futures advanced during the European morning trade Today, rising to a four-day high as market participants react positively to the latest news out of Europe. On the New York Mercantile Exchange, gold futures for June delivery traded at USD 1,583.15 an ounce during early European trade, gaining 0.76%.   Gold futures were likely to find support at USD 1,533.25 a troy ounce, the low from May 23 and near-term resistance at USD 1,594.35, the high from May 22.