Zinc yesterday traded with the negative node and settled -0.1% down at 103.90 as spain was designed to introduce a new austerity measure of EUR 30 billion Wednesday, while the cost for rescuing Cyprus' banking industry may reach EUR 10 billion. Meanwhile, France announced it will levy heavy taxes on rich people and large enterprises. All these reignited market concerns over the euro zone's prospects. Besides, the US markets were closed for a holiday and depressed market activity on the LME, while the ECB would announce its interest rate decision very soon. In this context, investors in the evening continued to sell the euro, which trended down below all recent moving averages. There is news European finance ministers will not provide no more than EUR 100 funds to Spain at the regular meeting to be held, and that the conclusion of an agreement bolstering the country's banking sector will also be postponed. Coupled with the fact that Sweden's central bank unexpectedly announced to keep the existing interest rates unchanged, investors should keep cautious ahead of releases of the ECB's interest rate meeting results. For today's session market is looking to take support at 103.4, a break below could see a test of 102.8 and where as resistance is now likely to be seen at 104.4, a move above could see prices testing 104.8.

Trading Ideas:

Zinc trading range for the day is 102.8-104.8.

Zinc yesterday traded with range bound node in absence of volatily as US mkt was closed yesterday

There is news European finance ministers will not provide no more than EUR 100 funds to Spain at the regular meeting to be held

52,350 tns of fresh net cancellations of LME stocks appeared after 113,925 tns were cancelled last Thursday.